BEER LAW: Medley of stories – Oregon, Arizona, Hop Obama, Texas, Golden Gophers
Since the downturn of the economy, many state legislatures are searching for new ways to “collect” more revenue. Where are they turning to? To the industry that is doing the best in this economy: Alcohol. Here are a few things that have been going on:
Oregon State Legislation wants to increase the beer tax
The Oregon House of Representatives proposed a bill that would raise the tax on a 12-ounce beer to 15 cents for drug and alcohol abuse prevention and treatment.
The current state tax on beer is less than a penny a glass. It’s among the lowest in the country, untouched in more than three decades and guarded by powerful interest groups.
Concern: This tax would have a negative impact on beer sales and many breweries would go out of business. This will increase the price of beer and will create job losses.
Oregon’s market-small but vocal craft beer makers oppose the bill, arguing that increasing the $2.60 tax on a barrel of beer to nearly $50 would crimp the industry and result in layoffs. The cost of a pint will go from $4 to $5.50.
Who’s effected: Widmer, Redhook, Rogue, Bridgeport, Steelhead, MacTarnahans, Deschutes, Rockbottom, Laurelwood, Fullsail, and about 40+ other breweries operating in the state.
Details: Oregon House Bill 2461
Oregon is fourth highest in microbreweries per capita in the United States, while Portland has the most microbreweries per capita in the world.
For: Oregon Lawmawkers
Against: All breweries in Oregon
2Beerguys: Two Thumbs Down
Articles:
Oregon Live.com – Opinion
Oregon Live.com -Revenue Hunt
Oregon Live.com – Beer: The Wrong Target.
Oregon Live.com – The bottomless debate over the beer tax
Blue Oregon.com: Brewing Beer is Not a Sin
Oregon Live.com: How is raising brewery taxes 1,900 percent fair?
OPB News: Brewers Can’t Bear Beer Tax Proposal
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Arizona legislators trying to outdo Oregon with a 2087% increase in beer tax
It wasn’t enough that Oregon legislators wanted to whack beer drinkers and their state’s small breweries with a 1900% tax increase. Now Arizona is considering a “Liquor Luxury Tax†of $3.50 a gallon ! That’s up from the current rate of 16 cents a gallon.
Details: Arizona H.B. 2524
At $3.50 a gallon this equates to $7.85 per case “luxury†tax on beer. The logic is unfathomable. There won’t be any breweries around to pay the tax. Loss of jobs are but one calculable causality.
Against: Approx. 25 small and independent craft breweries in Arizona
For: State Legislatures
2Beerguys: Two Thumbs Down
Articles:
Beer Examiner
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Easing restrictions on microbreweries – Texas
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This bill is a way to support quality entrepreneurship in Texas. The legislation, if passed, would amend the Texas Alcoholic Beverage Commission code to allow small in-state brewers to sell bottled beer for off-premise consumption at their breweries.
Details: Texas Brewers Parity Amendment HB 1062
Texas winemakers were successful in 2005 in amending the TABC code to permit wineries to sell wine on site to take-home customers. This generates an increased wine sales by greater than 12%.
For: Craft Breweries located in Texas – (currently only 8 – Spoetzl Brewery, Austin’s Live Oak and (512) Brewing, Saint Arnold Brewing in Houston, Real Ale in Blanco, Southern Star in Conroe and Franconia in McKinney.) And two brewing giants in Texas — Miller in Fort Worth and Anheuser-Busch in Houston)
Against: Texas beer distributors
Not Included: Brewpubs
2Beerguys: Two Thumbs Up
Articles:
Star Telegram
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Sixpoint is no longer allow to make ‘Obama’ ale: Brooklyn, New York
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Sixpoint Brewery was ordered to stop making it’s popular “Hop Obama” ale. The cease-and-desist order was issued by the Tax and Trade Bureau of the federal Bureau of Alcohol, Tobacco and Firearms on the grounds that Sixpoint Craft Ales did not have permission from to use the president’s likeness on the tasty, hop-heavy brew.
Concern: Label rights were approved, but then taken away. This is a reminder of how swiftly prohibition destroyed the beer industry.
Also, Sixpoint would have to destroy their product and take a loss. In this economy, this could be damaging to the brewery. Pacific Standard, a Fourth Avenue bar had donated $1 from every pint of Hop Obama to the Obama campaign. “[Sixpoint] wasn’t trying to use his name to make money, they were actually trying to support him — while making a good beer.â€
Winners: No one
Losers: Sixpoint Brewery and Hop Obama ale fans.
2Beerguys: Two Thumbs Down
Articles:
Link to article on the Brooklyn Paper
New York Times: Microbrewery behind “Hop Obama”
New York Times: Crying in Their Presidential Beer
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Lawmakers are debating this year’s omnibus liquor bill: Minnesota
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The University of Minnesota is in the middle of building a new football Stadium for the Golden Gophers. The University has proposed to limit alcohol sales only to premium seating areas and suites in the new TCF Bank Stadium.
Concern: “Alcohol sales shouldn’t be limited to places where the rich people sit.” It could increase binge drinking before the game.
For: University of Minnesota Board of Regents
Against: University of Minnesota fans who can’t spend billions for tickets.
2Beerguys: Two Thumbs Up
Other items currently in debate:
* Legislation that would allow craft brewers who make more than 3,500 barrels and less than 7,000 barrels to do both retail and wholesale sales. (The bill was withdrawn before a vote was taken.)
* Relax rules for artisan distillers that make up to 25,000 gallons a year of vodka, whisky and other hard alcohol. This bill would allow artisan distillers to operate by buying a $250 license. Currently, artisan distillers must pay a $30,000 annual manufacturers fee to do business. Distillers would be allowed to sell a liter of liquor at off-sale to customers. (The bill was laid over without a vote being taken.)
The bills run into conflict with Minnesota’s three-tier system of alcohol supply and distribution. The system, which dates back to the Prohibition era, prevents the makers of alcoholic beverages from distributing and selling their product.
Winners: Macro Breweries (who don’t face additional competition), Distributors,
Losers: Small Craft Breweries and Distilleries, Consumers.
2Beerguys: Two Sad Thumbs
Articles:
St. Paul Legal Ledger
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