Alcohol Excise Taxes Archives - ALCOHOL LAW ADVISOR

Pennsylvania Governor Calls for Cannabis Legalization and State Alcohol Tax Relief

by Alva C. Mather | Aug 31, 2020 | Alcohol Excise Taxes, Cannabis, Legislation

Pennsylvania’s governor is urging the state’s legislature to legalize recreational marijuana and pass a six-month reduction or cancellation of the state’s alcohol tax on the hospitality industry. Pennsylvania would join 11 other states and Washington, D.C., in fully legalizing marijuana, which can be lucrative for states.

“It’s almost, from a legislative and a state government perspective, a no brainer, because it’s a new source of revenue that you don’t have at a time where you need it desperately,” McDermott Will & Emery partner Alva C. Mather said in a recent Brewbound article. “And there’s lots of precedent for how to make it work in many other states, so the tide has turned quite a bit in the last several years where I think it’s not as taboo as it used to be.”

“States are in a very difficult situation in light of the pandemic, in terms of how they’re going to be able to generate more revenue and more job opportunities,” Mather said. “This is an entirely new industry that brings both to the table.”

Detailed Summary of Federal Requirements for Production of Hand Sanitizing Products

by Alva C. Mather | Apr 1, 2020 | Alcohol Excise Taxes, Food Safety and FDA, Legislation, Non-Beverage Alcohol, TTB COLAs and Formulas

To meet the growing need for hand sanitizing products, various federal agencies including the Alcohol Tobacco Tax and Trade Bureau (TTB), Federal Drug Administration (FDA), Health and Human Services (HHS) and Congress have been rapidly updating and providing guidance for alcohol manufacturers interested in producing or supplying alcohol for the production of these important products. The below neatly summarizes the key issues surrounding the production of alcohol for use in or production of hand sanitizers for distilled spirts plants (DSPs).

(more…)

Mississippi Supreme Court Rejects ‘Passage of Title’ DTC Theory

by McDermott Will & Emery | Mar 6, 2020 | Alcohol Excise Taxes, Distribution

Last week, the Supreme Court of Mississippi handed down an opinion in Fitch v. Wine Express Inc., No. 2018-SA-01259-SCT. A state court decision on the rather dry subject of personal jurisdiction often merits little comment, but the Fitch opinion features an emphatic rejection of the legal theory relied upon by many direct-to-consumer retail alcohol sellers today.

As a “control” state for wine sales, Mississippi law generally prohibits the importation, transportation and sale of alcoholic beverages (a term that includes wine) outside of the state’s monopoly control system. And, as in virtually every state, the retail sale of wine to consumers is reserved to state licensees and, in the case of control jurisdictions, the state itself.

(more…)

Federal Alcohol Excise Taxes 101

by McDermott Will & Emery | Jan 2, 2020 | Alcohol Excise Taxes, Legislation

There are many laws at both the federal and state level that govern the production and distribution of distilled spirits. For example, craft distillers must comply with licensing and permitting requirements, trade practice laws, advertising restrictions, and, depending on the jurisdiction, alcohol franchise law. One of the most fundamental—and most complex—areas of law governing distilled spirits is excise taxes.

An article authored by McDermott’s Bethany K. Hatef in the Winter 2020 issue of Artisan Spirit Magazine provides a high-level overview of the federal alcohol excise tax system and some specific features that apply to distilled spirits, and also explains the current status of the Craft Beverage Modernization Act, the legislation temporarily providing for reduced tax rates for certain amounts of distilled spirits.

Access the full article.

Originally published in Artisan Spirit Magazine: Winter 2020.

TTB Publishes New Nonbeverage Product Formula Form

by T. Marshall Fawley III and McDermott Will & Emery | Aug 19, 2019 | Alcohol Excise Taxes, Non-Beverage Alcohol, TTB COLAs and Formulas

On August 12, 2019, the Alcohol and Tobacco Tax and Trade Bureau (TTB) published its updated Formula and Process for Nonbeverage Product, TTB Form 5154.1. The Nonbeverage Product approval process is critical to obtain “drawback” (a refund) on most of the alcohol excise tax on distilled spirits used to make such products deemed “unfit for beverage purposes.” The Nonbeverage Formula Form accordingly is important to producers of flavorings and extracts, soft drink concentrates and other non-beverage products made using potable alcohol. (more…)

TTB Publishes NPRMs to Repeal Standards of Fill for Wine and Distilled Spirits

by McDermott Will & Emery | Jul 3, 2019 | Alcohol Excise Taxes, TTB COLAs and Formulas

On Monday, July 1, 2019, the Alcohol and Tobacco Tax and Trade Bureau (TTB) published two eagerly anticipated notices of proposed rulemaking (NPRMs) to largely repeal the standards of fill for wine and distilled spirits containers. The highlights: (more…)

Winds of Change Blowing for Craft Brewers

by Arthur J. DeCelle and McDermott Will & Emery | May 29, 2019 | Advertising and Marketing, Alcohol Excise Taxes, Distribution, Food Safety and FDA, Import/Export, Legislation, Trade Practices, TTB COLAs and Formulas

For those who follow developments in the law and craft brewing with equal passion, every year has its share of substantial issues. This year has been no exception, with a pending Supreme Court case; a substantial upswing in federal trade practice enforcement activity; a massive rewrite of US Tax and Trade Bureau (TTB) labeling and advertising regulations; and prospects for extending the biggest cuts in the excise tax on beer since the repeal of Prohibition.

As these developments play out over the next year, we may see changes translate into the marketplace. Find out what you can expect.

Access the full article.

Originally published in The New Brewer, May/June 2019.

TTB Spring 2019 Updates to Semi-Annual Regulatory Agenda

by McDermott Will & Emery | May 28, 2019 | Advertising and Marketing, Alcohol Excise Taxes, Legislation, Trade Practices, TTB COLAs and Formulas

The spring edition of the federal government’s semi-annual Unified Agenda of Federal Regulatory and Deregulatory Actions (Regulatory Agenda) has been published. Like other federal agencies, the Alcohol and Tobacco Tax and Trade Bureau (TTB) uses the Regulatory Agenda to report on its current rulemaking projects.

The Regulatory Agenda provides glimpses into TTB’s policy focus and aspirations. But, readers should recognize that TTB rulemaking moves very slowly, and the Agency often does not meet the aspirational dates published in the Regulatory Agenda. (more…)

Further CBP Guidance on Craft Beverage Modernization Act

by McDermott Will & Emery | Oct 19, 2018 | Alcohol Excise Taxes, Legislation

Earlier this week, US Customs and Border Protection (CBP) issued further guidance on the procedures for importers to take the lower tax rates and credits available under the Craft Beverage Modernization Act (CBMA).

Key points of the new guidance:

CBP will process drawback claims on an oldest-entry-first basis.
Failure to substantiate drawback claims by January 31, 2019, risks a loss of the CBMA rates/credits for the entries in question.
Going forward, every entry seeking to claim CBMA rates/credits must be accompanied by a CBMA Spreadsheet based on a template provided by CBP.
Each importer must also submit a Controlled Group Spreadsheet, based on a template provided by CBP, for each controlled group it belongs to (foreign producers have the option of providing this information directly to CBP). Importers are responsible for immediately reporting to CBP any changes to the information in the Controlled Group Spreadsheet.
Each foreign producer must provide their importer or CBP with an Assignment Certification based on a template provided by CBP.

With this guidance, importers can now start benefiting from the CBMA lower rates and credits on entries going forward, and make drawback claims for imports entered since January 1, 2018.

New CBMA Guidance Further Clarifies Excise Tax Rules for Imported Beverages

by McDermott Will & Emery | Oct 8, 2018 | Alcohol Excise Taxes, Import/Export

Last week Customs & Border Protection (CBP) issued additional guidance on the Craft Beverage Modernization Act (CBMA) rules for applying the CBMA lower excise tax rates (for beer and distilled spirits) and credits (for wine) to alcohol beverages imported from other countries.

The new guidance provides further clarity on the procedures required to make claims for drawback (refund) of taxes paid at the non-CBMA rate on product imported since the beginning of calendar 2018. It also indicates that CBP expects to provide additional guidance this month (October) on taking the lower rates and credits contemporaneously with importing additional product going forward. Among other things, CBP apparently will soon publish: (1) a Controlled Group Spreadsheet to track eligibility for the lower rates and credits; and (2) an Assignment Certification that foreign producers must execute and their importers must file in order to claim the CBMA lower rates and credits.

In short, if CBP can keep to its timetable, importers can begin claiming the lower CBMA rates and credits by the end of the month.

BLOG EDITORS

STAY CONNECTED

TOPICS

ARCHIVES

RECENT POSTS