Udall Proposes Tax Break on Beer
This is a good start but will not do me any good unless this tax break also serves to lower the price of craft brews, I just can't justify paying $8.00 + for a six pack of beer. Making improvements at a brewery to be able to make more beer is great and additional jobs and keeping the money in the community is commendable but what good if people can't afford to buy the beer. I would hope that the economy of scale will apply and the price will drop to reasonable and affordable levels.
http://www.coloradoan.com/article/20...nclick_check=1
Breweries are growing at such a rapid pace that they often invest everything they earn in keeping up with demand. But a bill out of Colorado would help brewers keep more money in their pockets to grow their business.
A tax cut being floated by U.S. Sen. Mark Udall of Colorado proposes letting breweries keep more money to invest back into the local economy and spur further growth in the already growing industry.
Udall’s Brewers Excise and Economic Relief Act calls for cutting the excise tax on a barrel of beer from $18 to $9 for big brewers and from $7 to $3.50 for small breweries.
Fort Collins, home to eight craft brewers and one macrobrewer, stands to see thousands of dollars remain in the community if the bill becomes law.
Colorado is the largest beer producing state in the country, and the beer industry is responsible for more than 100,000 jobs in production, manufacturing, commodities production and retail distribution, according to Udall.
In Colorado, liquor excise tax is levied on the liters or gallons first sold, used or consumed in Colorado. Alcohol beverages shipped outside of Colorado by a licensed manufacturer or wholesaler are exempt from Colorado’s liquor excise tax, according to the Department of Revenue.
“Our craft-brewing industry is injecting millions of dollars into Colorado’s economy and creating thousands of new jobs. These aren’t your dad’s beers — Colorado’s risk-taking, adventurous brewers have made Colorado the Napa Valley of beer. I am committed to working with our brewing community to ensure that our thriving craft beer business remains strong and growing,” Udall said in an email.
Fort Collins impact
Many Fort Collins breweries still are in their startup phase, trying to keep up with demand and grow responsibility.
When it comes to operating a brewery, while the industry is booming, every penny counts. Current law defines a small brewer as producing 60,000 barrels a year, which includes most of the breweries in Fort Collins.
Smaller breweries such as Fort Collins’ Funkwerks, which produces about 700 barrels, stand to see some return by only paying $3.50 in excise tax per barrel under the proposal. That means Funkwerks would save $2,450 a year because it expects to produce about 1,000 barrels next year.
