Reduction in State Alcohol Taxes

[Kent Rabish]

In Michigan we have a very high mark when looking at the taxes paid on spirits here. Has anyone had any success going to their state capital and as a group getting a reduction in the state tax paid on spirit? My thought was that if a distillery produces the spirit and uses local agriculture to produce these spirits how about a reduction in the taxes paid? Not expecting much to happen on this here because of our economy but would like to know if other states were helping distillers located in their states. It would make sense because if we are buying our grains that are grown by farmers in the state we are helping supporting the economy and helping our farmers.

[bluestar]

First might be to organize a coalition that would want to push such an agenda. Would include existing small distillers of course, but that is a very small group. Add the likely new small distillers, such as existing breweries, brew pubs, and wineries; then add the agricultural producers that would care, such as small farmers that would grow source materials. Since our planned business model also focusses on using Michigan agricultural products for artisan distilling, we would certainly be on board. One has to also make the argument that the net increase in revenue due to the growth in total number and production of each small distillery, and indirect affect on agricultural economy, would significantly enhance the net tax revenue lost to the state from the reduction. For that, a simple economic study put together by the ag econ department of MSU, for example, would be necessary.

Derrick

[absaroka]

We were successful in lowering excise and license taxes for small distillers two years ago. We also currently have a bill that just passed the senate on the way to the house as an agricultural mark up reduction. It has received overwhelming support.

[Kent Rabish]

Thanks for the feedback! We will go forward from here.

Kent

[absaroka]

Thanks for the feedback! We will go forward from here.

Kent

Agricultural adjustment:

http://laws.leg.mt.gov/laws11/LAW0203W$BSRV.ActionQuery?P_BLTP_BILL_TYP_CD=SB&P_BILL_NO=215&P_BILL_DFT_NO=&P_CHPT_NO=&Z_ACTION=Find&P_SBJ_DESCR=&P_SBJT_SBJ_CD=&P_LST_NM1=&P_ENTY_ID_SEQ=

Small producer excise tax adjustment:

http://laws.leg.mt.gov/laws09/law0210W$BSIV.ActionQuery?P_BILL_DFT_NO5=LC2231&Z_ACTION=Find

[daveflintstone]

Is there a list somewhere of which states have reduced taxes for locally produced spirits, wine, beer?

[PeteB]

I imagine it varies quite a bit, but roughly how much state alcohol tax do you pay?

I am not publishing the very high excise we pay in australia because it wouldn't help your cause.

Good luck.