StillDragon® Community Forum

Welcome!

Be part of our community & join our international next generation forum now!

In this Discussion

New Tax Rebates in the US?

Saw this posted on Artisan Distiller this morning.

This is dated May 26,

HR 2520: Distillery Innovation and Excise Tax Reform Act of 2015 Introduced May 26, 2015 12:17 PM Large and Small Distillers Unite Behind Bi-partisan Legislation

WASHINGTON D.C. – A new bipartisan bill to cut federal excise taxes on distillers of all sizes has been introduced by Rep. Todd Young (R-IN) and Rep. John Yarmuth (D-KY), the Distilled Spirits Council (DISCUS) and the American Craft Spirits Association (ACSA) announced today.

The bill, HR 2520, the Distillery Innovation and Excise Tax Reform Act of 2015, which is supported by trade associations representing both large and small distillers, would cut the current tax rate of $13.50 per proof gallon to $2.70 per proof gallon on the first 100,000 gallons for all distillers. The bill sets a rate of $9.00 per proof gallon on all spirits above the 100,000 gallon threshold.

Importantly, the two trade groups agreed that these rates should apply to all distillers regardless of size, and to imported spirits as well as domestic products. “It is significant that the distillers of all sizes are united behind this important hospitality industry legislation,” said Distilled Spirits CEO Peter Cressy. “We thank the sponsors for recognizing the economic impact passage of this bill will have for our industry.”

ACSA President Tom Mooney from House Spirits in Portland, OR, said, “This bill will help create jobs across America for the rapidly growing distilling industry. It will translate into real economic benefits and jobs for hundreds of small distillers and their surrounding communities.”

Ted Huber of Starlight Distillery in Indiana, who is both a DISCUS board member and ACSA vice president, added, “I want to thank Congressmen Young and Yarmuth for championing our distilleries by introducing this bill.”

Distilled spirits products are one of the most highly taxed consumer products in the United States with more than half of the purchase price of a typical bottle of spirits going to taxes and fees.

The Distilled Spirits Council represents large and mid-sized distillers, and nearly 120 small distiller affiliate members. ACSA, representing more than 300 small distillers nationwide, is a not for profit trade association dedicated to protecting and promoting American craft spirits.

Do you guys in the States have any info? Sounds a massive break, 100,000 gallons though? Sounds like it will cost the govt a whole lot of revenue.

StillDragon Australia & New Zealand - Your StillDragon® Distributor for Australia & New Zealand

«1

Comments

  • The perceived loss in revenues would be mitigated by more and more start ups being able to get into the game and move into the black more rapidly.

    We see car dealers, drug stores, fast food on every street corner. No reason there couldn't be local distilleries for every neighborhood.

    StillDragon North America - Your StillDragon® Distributor for North America

  • Drug dealers and car stores eh?

    StillDragon Australia & New Zealand - Your StillDragon® Distributor for Australia & New Zealand

  • they are waking the beast in my opinion... it will not be a clean bill and crap in the fine print will screw us... I would rather have the right to sell to a local bar or store and pay all the tax... (distributor takes 2-5x what tax is)

  • Perhaps they're lining up to start taxing all the names on that list they've been working on for a few years.

  • "I'm from the government and I'm here to help"

  • @punkin said: ...Sounds like it will cost the govt a whole lot of revenue.

    The government produces nothing. It has nothing until it takes it away from somebody.

    I'm more like I am now than I was before.

  • edited June 2016

    Semantics. They provide services.

    StillDragon Australia & New Zealand - Your StillDragon® Distributor for Australia & New Zealand

  • They provide restrictions to your freedoms and take your money for doing it. I've never heard thievery called semantics. Is that what it's called when the government does it?

    I'm more like I am now than I was before.

  • The government should provide security for it's people. That's it. Everything else should be done through the private sector. THAT'S how things get done for a fraction of the cost. The bloated programs are the leeches that eat most of our tax money.

    Roads? Private contractors. Healthcare? Private providers Military? The Federal Government

  • @punkin said: Semantics. They provide services.

    That we overpay for. Just look at the USPS vs UPS or FedEx. USPS constantly in the red. UPS and FedEx have to make a profit while being competitive and answering to shareholders.

  • edited June 2016

    Ever wonder why there is a "Do Not Call" list against telemarketers but there is no similar "Do Not Mail" list for junk mailers?

    Because more than half the mail the USPS delivers today is reduced rate junk-mail. If you eliminated junk mail, the USPS would go out of business. By that I mean, fire at least half the workers.

    Also, did you know it is illegal for UPS or FedEx to put a package (even a letter package) in your mailbox?

  • @grim said: Also, did you know it is illegal for UPS or FedEx to put a package (even a letter package) in your mailbox?

    Yep, I did know that. For services rendered they have more right to use the box than the USPS. The USPS is a prime example of a government run "business". Textbook case in how to run a business into the ground. If they didn't have the government backing, they wouldn't last 5 more minutes.

  • Not to mention the government cluster-fuck lovingly known as Obamacare...

    I'm more like I am now than I was before.

  • Don't even get me started. "Most families will see their healthcare cost decrease by $2,500". I mus not be "most families" because ours has almost doubled. 3 healthy people. $18,000 a year? Liberal government redistribution of wealth. Socialism already here at our doorstep. Next year we are going to say FUCK YOU and go without. Pocket the $18k a year and self insure. If we have something catastrophic happen we will just pay $100 a month for the rest of our lives toward the medical bills.

  • Yes you have private jails and police forces too, how's that working out?

    I'm glad to say things are a little different here. I have no desire to see the Australia Post in private hands. At the moment it costs $1 to send a letter next door or into the remotest corner of Australia. People in the remotest corners of Australia can get a phone service connected for $300 even if Telstra have to install a solar panel and satellite dish.

    Govt runs services here, it costs more sure, the cost is not the only thing it's about.

    Speaking of USPS it's the only economical way to ship to Australia from US.

    StillDragon Australia & New Zealand - Your StillDragon® Distributor for Australia & New Zealand

  • edited June 2016

    You're right, it's not the cost of all that shit that is the most fucked up part. It's government having their noses in every aspect of your life. That may be how you like to live, but it's not what we want here.

    Do you really want men in the womens' bathroom, locker room, shower, because the man chooses to identify as a woman at that particular moment? That's the insane shit they're trying to ram down our necks now.

    I'm more like I am now than I was before.

  • @FloridaCracker said: Next year we are going to say FUCK YOU and go without. Pocket the $18k a year and self insure. If we have something catastrophic happen we will just pay $100 a month for the rest of our lives toward the medical bills.

    Au contraire mon ami. You no longer can be denied insurance for preexisting conditions. Buy back into your insurance after the catastrophic event.

    Now there's a sustainable business plan, huh?

    I'm more like I am now than I was before.

  • We're a long way from tax rebates.

    StillDragon Australia & New Zealand - Your StillDragon® Distributor for Australia & New Zealand

  • Google Earth says about 9,400 miles.

    I'm more like I am now than I was before.

  • Back on topic - I think there's actually a couple of very similar bills floating around. Not sure I'd Abby are going to get passed before November

  • edited June 2016

    Found the bill again

    Since I never had exposure to the legislative process in the US, how many cosponsors does it take to pass a bill? The house has 443 members, so it's a simple majority (222) enough?

  • Sponsorship just pushes it toward a vote...then it seems the amount to pass changes depending on the politics. Then the Pres decides to Sign into law or Veto.

    Some states have made some real progress for small distilleries though. In some States distillery can retail at distillery, some have a full fledged bar & restaurant, some can have off site tasting rooms, some can't do squat.

    DAD... not yours.. ah, hell... I don't know...

  • Overall, Washington State's laws are pretty good for the small distiller, but there's pressure on those laws from the non-distillers who just import pre-made liquor from Indiana factories, but want the advantages granted real local distilleries.

    Zymurgy Bob, a simple potstiller

    my book, Making Fine Spirits

  • edited June 2016

    Classic!

    image

    image

    In case the print in the second photo is too fine to see, here is a transcript of the property owners' response:

    Dear Mr. Niemela:

    Thank you for your inquiry regarding accessing our property to survey for the yellow-legged frog. We may be able to help you out with this matter.

    We have divided our 2.26 acres into 75 equal survey units with a draw tag for each unit. Application fees are only $8.00 per unit after you purchase the “Frog Survey License” ($120.00 resident / $180.00 Non-Resident). You will also need to obtain a “Frog Habitat” parking permit ($10.00 per vehicle). You will also need an “Invasive Species” stamp ($15.00 for the first vehicle and $5.00 for each add’l vehicle) You will also want to register at the Check Station to have your vehicle inspected for non-native plant life prior to entering our property. There is also a Day Use fee, $5.00 per vehicle.

    If you are successful in the Draw you will be notified two weeks in advance so you can make necessary plans and purchase your “Creek Habitat” stamp. ($18.00 Resident / $140.00 Non-Resident). Survey units open between 8am and 3pm but you cannot commence survey until 9am and must cease all survey activity by 1pm.

    Survey Gear can only include a net with a 2″ diameter made of 100% organic cotton netting with no longer than an 18″ handle, non-weighted and no deeper than 6′ from net frame to bottom of net. Handles can only be made of BPA-free plastics or wooden handles. After 1pm you can use a net with a 3″ diameter if you purchase the “Frog Net Endorsement” ($75.00 Resident / $250 Non-Resident). Any frogs captured that are released will need to be released with an approved release device back into the environment unharmed.

    As of June 1, we are offering draw tags for our “Premium Survey” units and application is again only $8.00 per application. However, all fees can be waives if you can verify “Native Indian Tribal rights and status.

    You will also need to provide evidence of successful completion of “Frog Surveys and You” comprehensive course on frog identification, safe handling practices, and self-defense strategies for frog attacks. This course is offered online through an accredited program for a nominal fee of $750.00.

    Please let us know if we can be of assistance to you. Otherwise, we decline access to our property but appreciate your inquiry.

    Sincerely,

    Larry & Amanda Anderson

    Request-to-Access-Property.jpg
    544 x 600 - 53K
    Reply-to-State-462x620.jpg
    462 x 620 - 58K

    I'm more like I am now than I was before.

  • This the response to a bill being posted that is to encourage more small business and make it easier to open a profitable distillery and is also linked to a bill that decriminalizes home distilling in the US?

    Wow.

    StillDragon Australia & New Zealand - Your StillDragon® Distributor for Australia & New Zealand

  • edited June 2016

    My response was to this way of thinking:

    @punkin said: Sounds like it will cost the govt a whole lot of revenue.

    I was not responding to the merits of the bill.

    I'm more like I am now than I was before.

  • edited June 2016

    The US House of Representatives has 435 voting members. 218 votes is considered a simple majority.

    I'm more like I am now than I was before.

  • And the US Senate's "sister" bill S. 1562 is progressing nicely too: 44 out 100 supporters today. All you US persons - keep your fingers crossed, if both bills pass their respective Houses, then the Executive branch - Obama - must sign... Come on all, send those letters to your representatives. Legalization (in some states) is so, so close.

  • edited June 2016

    The companion bill to S.1562 is H.R. 2903. Both are named the Craft Beverage Modernization and Tax Reform Act of 2015. This pair will not only lower taxes as described above but will legalize hobby distilling (with limits like a maximum still size of 15 gallons).

    These bills would amend the Internal Revenue Code to:

    • allow taxpayers who are liable for not more than $50,000 per year in excise taxes on distilled spirits, wine, or beer to file and pay such taxes quarterly without the requirement of posting a bond covering the operations and withdrawals of such distilled spirits, wines, or beer;
    • allow such taxpayers who reasonably expect to have a tax liability of not more than $1,000 per year and who were liable for not more than $1,000 in taxes in the preceding calendar year to file and pay such taxes annually rather than quarterly;
    • exclude the aging period from the production period for beer, wine, or distilled spirits for purposes of determining whether a taxpayer can expense, rather than capitalize, interest costs paid or incurred during the production period;
    • reduce excise tax rates on beer, wine, and distilled spirits produced in the United States to $2.70 per proof gallon for the first 100,000 proof gallons produced;
    • permit the transfer of beer between bonded facilities without payment of tax;
    • modify the definition of "hard cider" for excise tax purposes; and
    • exempt home distillery establishments that produce distilled spirits solely for personal or family use from excise tax and bonding requirements.

    Today there are 45 senate co-sponsors and 253 house co-sponsors for S.1562 and H.R. 2903.

    HR 2520 makes ONLY the excise tax change.

    US members please contact your Senator and Representative and support S.1562 and H.R. 2903 NOT H.R. 2520.

    Added to message:

    As of today HR 2520 only has 15 co-sponsors. It looks like HR 2903 is the bill with a chance to pass.

    S.1444 is the companion bill to H.R.2520 it has 4 co-sponsors.

    Added:

    I am restricted to the Novice forum on Artisan Distillers. If you have access to post on this thread please update the thread with this information.

Sign In or Register to comment.