Tag Archives: American Homebrewers Association

Update on the Federal Tax Increase on Beer

I recently received an e-mail as part of the American Homebrewers Association from Charlie Papazian president of the Brewers Association with an update on the federal tax increase on beer. Here is his statement:

Some of you are aware of the headline discussions in Washington DC this week and last week regarding proposals to dramatically increase Federal Excise Tax on brewers and other alcohol beverage industries.  Brewers Association staff and those who are working on behalf of the Brewers Association in Washington, DC are in daily and regular communications on how to best represent small brewers concerns in these very critical discussions.  Dramatic excise tax increases would be harmful to both small brewery businesses and to the existing American beer culture of enjoyment and responsibility.
Brewers Association
In order to gain strategic ground before any Federal Excise Tax increase was proposed, the Brewers Association earlier this year teamed up with the Beer Institute to help introduce two bills advocating a reduction in Federal Excise Tax. These two bills are House Bill H.R. 836 and Senate Bill S.1058.  They are helpful as both a defense and as a proactive initiative.  H.R. 836 has 178 co-sponsors.  S.1058 introduced last week has an initial 7 co-sponsors in the Senate.  These two bills can help us push back on proposals to dramatically increase excise taxes on small brewers and the industry as a whole.
Earlier this year small brewers were asked by BA to call their Representatives and ask them to sign on as co-sponsor of H.R. 836.   Soon they will be receiving information asking them to call their Senator to become a co-sponsor of S. 1058.
In addition to the threat of Federal Excise Tax increases, the Administration’s new budget outline proposes the establishment of annual user fees to fund TTB’s agency budget, which in effect would be an additional tax on brewers and other related industries.
Brewers Association is involved in expressing concerns on behalf of small brewers and beer enthusiasts on these two legislative matters.  You may hear from us in the near future regarding actions which you can be involved in on these matters.
The Brewers Association feels it is of utmost importance during these critical times that the beer industry present a united and coordinated effort on the federal level.  This is why we have teamed with the Beer Institute to help us represent our constituencies.  If you are involved or are considering being involved in any other Federal initiatives that would be relevant to American small brewers, please let us know about them.
or Charlie Papazian charlie@brewersassociation.org
Note:  On June 2, the Brewers Association is hosting a “Celebration of American Craft Beer” reception for congressional representatives and their staff on Capitol Hill.  We will recognize the two co-chairs of the House Small Brewers Caucus, Peter DeFazio (OR) and Denny Rehberg (MT).  The House Small Brewers Caucus (which currently has 46 members) has been championing issues relevant to both homebrewers and small brewers.
Brewers Association staff and brewery members will also attend and make presentations at the House Small Brewers Caucus’s meeting preceding the reception.
Thank you for your valued membership of the American Homebrewers Association,
Charlie Papazian, President

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