Craft Brewers Unhappy with Legislature Proposal for First Increase to Excise Tax Since 1981

Colorado Brewers Guild News

Craft Brewers Unhappy with Legislature Proposal for First Increase to Excise Tax Since 1981
Alcohol TaxesState LegislatureCraft Beer
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The Colorado Brewers Guild says even small increases could hurt local businesses.

A bill that will adjust Colorado’s excise tax on alcohol for the first time since 1981 is set to be heard on the state senate floor in the coming days and the Colorado Brewers Guild hopes the bill won’t pass.” would, by the admission of its sponsors, alter excise tax, the bill describes the amount it will collect from alcohol manufacturers and distributors as a fee.

When the bill was originally introduced, it suggested adding an additional 16 cent fee per gallon of malt liquor and hard cider distributed in Colorado. That would have tripled the amount brewers pay under the current excise tax of 8 cents per gallon.“Craft beer is flat or in decline right now, depending on who you talk to,” says Shawnee Adelson, executive director of the CBG.

According to the bill text, there is a strong link between alcohol use disorders and those for other substances, so it is difficult to treat alcohol misuse without allowing for the treatment of other disorders. Lastly, the CBG says the exemptions built into the bill still mean many local craft breweries will fall under its provisions. Any company that manufactures or distributes more than 100,000 thousand gallons of spirits, 130,000 gallons of wine or 186 million gallons of beer will have to pay the fee. Those amounts were raised as the bill made its way through senate committees.

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