Large and Small Distillers Agree to Pursue Federal Tax Reduction
Washington, DC – March 26, 2015 Trade associations representing both large and small distillers announced today they are uniting to advocate for legislation to reduce the federal excise tax on distilled spirits.
Members of the Distilled Spirits Council (DISCUS) and the American Craft Spirits Association (ACSA) agree to pursue joint tax legislation that sets a small producer excise tax rate of $2.70 per proof gallon on the first 100,000 gallons and a top rate of $9.00 on all spirits above the 100,000 gallon threshold. Importantly, the two trade groups agreed that these rates should apply to all distillers regardless of size, and to imported spirits as well as domestic products.
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“Legislation reducing the federal excise tax will encourage job creation and further investment by spirits producers across the country, while reducing the burden on consumers and hospitality businesses,” said ACSA President Tom Mooney from House Spirits in Portland, OR. “This is one of many ways small and large distillers are working together to ensure fair treatment for the entire spirits industry.”
Distilled spirits products are one of the most highly taxed consumer products in the United States with more than half of the purchase price of a typical bottle of spirits going to taxes and fees. A key part of that excessive tax burden is the federal excise tax, which is currently $13.50 per proof gallon.
ACSA represents over 700 small distillers operating in every state throughout the country, 110 of which are also members of the Distilled Spirits Council.
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