WASHINGTON, DC — Today, the Beer Institute, the national trade association representing brewers and beer importers, praised the Alcohol and Tobacco Tax and Trade Bureau’s (TTB) decision to simplify excise tax regulations for small brewers.
“The brewing industry appreciates the work that the TTB has done to refine their rules and regulations to reduce unnecessary bureaucracy,” said Jim McGreevy, Beer Institute president and CEO. “The beer industry is experiencing immense change right now, thanks to efforts like this that open pathways to the marketplace for small brewers.”
This rule is for the benefit of small brewers, essentially defined by TTB as those which produce less than 7,200 barrels. The TTB’s rule would institute a flat $1,000 penal sum for the brewer’s bond for these small brewers whose excise tax liability is expected to be less than $50,000 in a given calendar year and who were liable for no more than $50,000 in such taxes during the preceding calendar year.
The rule also allows these small brewers to move from monthly reports on operations and taxes to a quarterly report. The goal of this rule change is to reduce administrative costs for small brewers and create greater efficiency for TTB.
The new rules will become effective on January 1, 2015. For more information, the TTB press release can be found here.
In September, the Beer Institute joined a chorus of voices in the beverage alcohol industry that urged Congress to fully fund the Obama Administration’s $101 million request for the TTB budget.
“The TTB is vital to the success of the dynamic beer industry,” said McGreevy. “The agency has a proven history of maintaining balanced regulations that support the needs of both consumers and brewers. This is not the time to question the budget of an agency that is integral to job creation and expansion for brewers and beer importers.”
An industry letter was sent to House Appropriations Committee Chairman Hal Rogers (R-Ky.) and Ranking Member Nita Lowey (D-N.Y.) as well as Senate Appropriations Committee Chairwoman Barbara Mikulski (R-Md.) and Ranking Member Richard Shelby (R-Ala.). A copy of the letter is available here.
The Beer Institute is the national trade association for the American brewing industry, representing both large and small brewers, as well as importers and industry suppliers. First founded in 1863 as the U.S. Brewers Association, the Beer Institute is committed today to the development of sound public policy and to the values of civic duty and personal responsibility: www.BeerInstitute.org. Connect with us @BeerInstitute and on Facebook.