Small Spirits Makers' Equal Tax Act - The American Distilling Institute

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Goal To help support the recent expansion and to encourage further growth of small U.S.-based spirits manufacturing by creating a reduced federal excise tax rate for small-scale distilled spirits makers that mirrors the current reduced tiers for small beer and wine producers. Background The distilled spirits industry has enjoyed a renaissance of local, artisan production of unique spirits over the last five years. Our numbers have swelled from less than 40 licensed makers in 2003 to more than 200 in 2010. Because of our efforts, consumers in America and abroad are beginning to experience innovation and quality in spirits similar to what took place with micro-brewers in the 1980s-1990s and independent winemakers in the 1970s-1980s. (Today, many of these brands — such as Sam Adams, Anchor Steam, Mondavi and Kendal Jackson — are not only trend leaders but also sizeable businesses.) What made the growth of small beer and wine makers possible — other than hard work and passion — was a reduced federal excise tax rate that allowed them to make and sell artisan products without the economies of large-scale production. Today, small-scale beer producers pay 39% of the full federal excise tax that medium and large producers pay. Similarly, small producers of average-proof wine (
Reduced excise tax rates should apply to the first 65,000 proof gallons of spirits sold if producers sell no more than 100,000 proof gallons per year. Reduced rate apply to: � Brands directly owned by producers � Brands manufactured for third parties Financial Analysis of Proposal Small U.S. Producers 1 All Other Producers All Producers 2 Impact Cases sold (9L) 500,000 192,731,604 193,231,604 Split 0.26% 99.74% 100% Withdrawals (Proof Gallons) 952,381 367,107,817 368,060,198 Tax Free 28% 269,435 103,857,283 104,126,718 Taxable 72% 682,946 263,250,534 263,933,480 Current Federal Excise Tax $13.5 for all $9,219,770 $3,553,882,211 $ 3,563,101,981 Proposed Federal Excise Tax $2.70 for small $13.50 for rest $1,843,954 $3,553,882,211 $ 3,555,726,165 Tax Impact -$7,375,816 $0 -$7,375,816 0.21% 1. Source: American Distilling Institute estimates 2. Source: U.S. Tax & Trade Bureau, July 2006-July 2007 published figures Financial Impact of Proposal Amounts in $US mil.
Page 1: PROPOSAL: Small Spirits Makers' Equ
Page 5 and 6: 39. Celebration Distillation, New O
Page 7 and 8: 125. MB Roland Distillery, Inc, Pem
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Page 11 and 12: 48. Radiant LLC, San Francisco, CA
Page 13: 62. Rusty Trahan, Lake Charles, LA

Small Spirits Makers' Equal Tax Act - The American Distilling Institute

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