Wine Spectator: Small Wineries Facing Tax Hikes Win Reprieve From The FedsMay 18, 2018
Wine Spectator has learned that the Alcohol and Tobacco Tax and Trade Bureau (TTB) has extended a temporary procedure for small wineries trying to collect excise-tax credits, relieving many vintners who would have faced massive tax hikes come July 1.
On March 2, the TTB announced that a business has to have complete control over its wine production in order to receive a tax credit included in last year’s Tax Cuts and Jobs Act, effectively excluding wineries that use bonded wine cellars and custom-crush facilities.
The TTB included a temporary solution in its March ruling: Vintners could file “on-paper” transfers to virtually move their wine in bond to their winery, and then out again, taxes paid, from the bonded wine cellar, until June 30. After that, they had to physically move their wine or lose the tax credits. Now, winemakers, lobbyists, and members of Congress have convinced the TTB and the Treasury Department to allow the paper transfers to be used until Dec. 31, 2019—when the new excise-tax credits expire. Wine Spectator has the full story.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.