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Curt

Fed acquired, can we make without State permit?

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Curt    0

So this may sound like an odd question, but we received our federal permit, and have not received our State yet (Ohio). The state has been submitted, but still in process. So this the question: Can we make small batches for Research purposes without the intent to sell? If so, just pay the federal tax on it?

Please let me know your thoughts if you have any ideas.

Many thanks,

Curt

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dhdunbar    35

Curt:

I don't know the laws of Ohio, but ...

Don't distill anything until it is legal for you to do so under Ohio law.   The state issue usually is not sale; it is production.  Sales just exacerbate the problem that comes along with distilling without a license. Assume you cannot do it unless you receive specific, written confirmation that you can.  

Next, no one on this forum is your attorney.  I'm not nor are any of those who comment on questions like this.

Even if an attorney licensed to practice in Ohio responds, unless you have established an attorney-client relationship, that person is not your attorney.  Do not rely on my advice or anyone else's advice on this matter.  Ask the State or have your attorney ask the state.  Until you receive permission, assume you cannot do it.  

Finally, federal taxes are not due on spirits you distill.  You are liable for the tax value of the spirits until you are relieved of the liability or pay the liability, but you do not need to pay the federal excise tax until you withdraw the spirits from bond or otherwise trigger the liability.   You should get a grip on the fundamentals.  It's not very entertaining, but it's essential.

 

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Thatch    2

Just talked to a Liquor Control attorney today.  Left a message and they returned the call within 3 hours.  Call 614-644-2360, if the specialist cannot answer your questions ask to be transferred to legal.

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I also don't know about Ohio but in PA the Dept of Ag has to inspect your production area before making anything, as well as the state Liquor board.

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bluestar    41

In Illinois, we got permission to test run the still, so long as the product would never be sold or consumed. What they said at the time was that we could not manufacture, and running the still for test purposes was not manufacture if the product was not to be sold or consumed. But then, what do you do with it? That was 5 years ago, I am not sure we would get the same answer today.

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In Colorado you have to have dsp, state license and local sign off for occupancy prior to making alcohol.   There are a few things you can do, like get formulas approved and labels approved once you get your Dsp.  Once you get the dsp, you have to file your monthly reports even if it's all 0's. 

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We are in Ohio, just got our state permit in late June.  Per our compliance officer when she made her inspection, you cannot distill in Ohio without your state permit.  Once you get your permit, then you can apply for your listing.  This takes 45-60 days.

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Thatch    2

Jessica makes a good point.  If you are not aware, hooch is a food in Ohio and you must be inspected and permitted by the Ohio Dept of Ag.  This is in addition to Ohio Liquor Control.

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