Protect Craft Spirits – Contact National Lawmakers NOW

Without an extension of the CBMTRA, the fine spirits of hundreds of craft distilleries will incur a 400% increase in Federal Excise Tax. Photo provided by Fremont Mischief Distillery

Since the Craft Beverage Modernization & Tax Reform Act (CBMTRA) was enacted at the end of 2017, we’ve had a more fair and equitable tax structure for craft distillers and brewers. Unfortunately, this bill will expire at the end of 2019 and without an extension – and currently there is one sitting before Congress – Federal taxes on craft spirits, including ciders, wines, beers and distilled spirits, will go up 400%.

On January 1^st, 2020, the Federal Tax per gallon of craft spirits could go from $2.70 to $13.50.

The annual PROOF event in Fremont could vanish, along with hundreds of small craft distilleries across our state, if the CBMTRA is not extended. Photo by Shibaguyz Photography, Jul ’16

Across the country, and here in Fremont, small craft distillers, vintners, brewers, and cider-makers create new jobs, purchase equipment, invest in materials, and open attractive, tourist destinations that improve the economy and make our communities creatively richer. This tremendous tax increase will make it that much harder for these small, independently-owned manufacturers, like Fremont Mischief Distillery, to compete with large, national, big-name producers.

Come New Year’s Day, the federal excise tax bill on small distillers will quintuple unless Congress acts now. Taxes on liquor are higher in Washington State than anywhere else in the country, according to the national Distilled Spirits Council trade association. Currently, as much as 41% of the purchase price of a bottle of liquor in Washington is taxes, but this will go up startlingly after Jan 1^st.

Without small craft distilleries, we could lose venues and supporters of community events like the recent Fremont Music Festival at Fremont Mischief that hosted School of Rock. Photo by Adrian Laney, Dec ’19

The State of Washington has an impressive industry of craft distillers, vintners, brewers and cidermakers – and this tax will stunt if not strangle their business. If Congress can pass the 2020 Tax Extenders legislative package, in H.R. 1865, it will allow these crafters to keep creating, and providing us with innovative and interesting businesses.

You can help get word to our leaders by sending an e-mail through the official website for the trade association’s efforts to Stop Craft Tax Increases (click here.) Or, call our Senator Patty Murray, Minority Assistant Leader of the Senate, at (202)224-2621. Before Congress adjourns for the holidays, please contact them and let them know what you think of a one-year extension of CBMTRA!