US trade bodies unite in tax lobbying effort

Trade bodies representing both large and small distillers in the US have renounced “industry infighting” and joined forces to lobby for a reduction on spirits federal excise tax.

Discus and the ACSA have teamed up to campaign for a reduction in federal spirits tax

The Distilled Spirits Council of the US (Discus) and the American Craft Spirits Association (ACSA) are seeking a new small producer excise tax rate of US$2.70 per proof gallon on the first 100,000 gallons.

The organisations are also asking for a top rate of US$9.00 on all spirits above the 100,000-gallon threshold.

Discus and the ACSA argue that these rates should apply to all distillers regardless of size, and to imported spirits as well as domestic products.

“The unity we show by working together in support of sound tax policy will be welcomed on Capitol Hill where, all too often, partisanship and industry infighting seem to dominate the discussion of important issues,” said Discus president and CEO Peter Cressy, who will step down from the role at the end of this year.

“We look forward now to doing the hard work necessary to advance this bill.”

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

The associations said a federal excise tax was a “key part of that excessive burden”, and currently sits at US$13.50 per proof gallon.

“Legislation reducing the federal excise tax will encourage job creation and further investment by spirits producers across the country, while reducing the burden on consumers and hospitality businesses,” said ACSA president Tom Mooney, from House Spirits in Portland, Oregon.

“This is one of many ways small and large distillers are working together to ensure fair treatment for the entire spirits industry.”

The ACSA represents over 700 small distillers operating in every state throughout the country, 110 of which are also members of Discus.

Earlier this month, UK trade associations welcomed a 2% cut to spirits duty following a combined lobbying effort.