AP Photo/Donna McWilliam, File
When cities and states across America locked down to stop the spread of COVID-19, distilleries lost key moneymaking opportunities, from the loss of tourism to the closure of tasting rooms and cocktail bars, to the loss of in-store sampling. Despite these struggles, many distilleries decided to give back to the community by making hand sanitizer when communities across America suffered shortages. The government has rewarded this generosity with a bill for $14,000.
“At the beginning of the pandemic the FDA and our communities called out for help and distillers enthusiastically stepped up to the plate and provided an essential product to medical workers and first responders,” Aaron Bergh, a craft distiller and owner of Calwise Spirits on California’s Central Coast, told
Craft distilleries bracing for huge tax hike in 2021
Craft distilleries brace for tax hike
Craft distilleries are bracing for a huge tax hike in the new year that businesses say will wreak havoc on the craft liquor industry.
WASHINGTON (FOX 5 DC) - Craft distilleries are bracing for a huge tax hike in the new year that businesses say will wreak havoc on the craft liquor industry.
If Congress doesn’t act, craft distilleries will see their federal excise tax increase by 400 percent.
Currently, the excise tax distilleries pay on their liquor is based on how much is produced. Smaller distilleries that produce less pay a lower rate than the huge companies making millions of dollars and selling worldwide.