New Bill Seeks To Lower Distillery Tax RatesMay 27, 2015
A new bipartisan bill in the U.S. House of Representatives is aiming to reduce the tax rates for distillers of all sizes. Known as HR 2520, or the Distillery Innovation and Excise Tax Reform Act of 2015, the proposal would lower the tax rate from its current $13.50 per proof gallon to just $2.70 per proof gallon on the first 100,000 gallons for all distillers. Beyond the 100,000-gallon threshold, the rate would switch to $9.00 per proof gallon.
Introduced by U.S. Reps Todd Young of Indiana and John Yarmuth of Kentucky, HR 2520 is being backed by trade associations like the Distilled Spirits Council of the United States (DISCUS) and American Craft Spirits Association (ACSA). Both DISCUS and ACSA note that under current law more than half the purchase price of a typical bottle of spirits goes toward taxes and fees.
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