US liquor tax reform ‘should be priority’

The Distilled Spirits Council is taking advantage of the ‘lame duck session’ following the US election by renewing calls for tax reform for craft producers to be made a “priority”.

The Distilled Spirits Council has hailed a “historic” piece of alcohol legislation in Colorado

The trade association is backing The Craft Beverage Modernization and Tax Reform Act, which would see excise tax on the first 100,000 proof gallons of distilled spirits reduced to US$2.70 per gallon. This would bring the rates levied on spirits producers in line with those for brewers and vintners.

In addition, the legislation would reduce the excise on production over 100,000 gallons per year by 1%, down to $13.34 per

“A majority of members in both bodies of Congress support reducing the federal excise tax on spirits, beer and wine,” said Kraig R. Naasz, Distilled Spirits Council president and CEO.

“Congress should pass this much-needed tax reform legislation to spur investment and job creation at distilleries, much as similar tax incentives have fostered the development of new wineries and breweries over the past 20 years.”

The Craft Beverage Modernization and Tax Reform Act is sponsored by US Senators Ron Wyden (D-Ore.) and Roy Blunt (R-Mo.), plus US Representatives Erik Paulsen (R-Minn.) and Ron Kind (D-Wis.). The Act is also backed by 51 Senators and 248 Representatives, both Democrat and Republican.

If the legislation is passed, it would mark the first time that tax on distilled spirits has been reduced since the Civil War.

Earlier this year, The Distilled Spirits Council successfully lobbied Colorado lawmakers and saw a“historic” piece of legislation passed which permits spirits, wine and beer to be sold in grocery stores in the state.