Remove the Tax Penalty on Brewery and Distillery Tasting Rooms
Alabama praises itself as a business-friendly environment with low, easy-to-understand taxes. However, the state’s excise taxes on beer and liquor sold at tasting rooms are complicated, arbitrarily assessed, and unnecessarily high. The Guild supports a simple, flat $4 per liter tasting room tax on spirits and to remove the 50% penalty for beer sold at the tasting room.
Reform the Alabama Brewpub Act and Allow Brewpubs to Grow
Current Alabama law prevents brewpub licensees from thriving by limiting production to 10,000 barrels a year, restricting their ability to sell cans and bottles, and preventing other craft breweries from opening brewpub locations. The Guild supports increasing the production limit for brewpubs and allowing them to package their products. The Guild further supports allowing other brewing companies to own brewpub locations.
Allow Brewery and Distillery Owners to Participate in Non-Profits
Alabama ABC officials have interpreted existing three-tier statutes to prevent brewery and distillery owners from participating in nonprofits that also host licensed special events. The Guild supports a clear exemption for nonprofit organizations from the definition of “financial interest” for three-tier purposes.
Allow for Multiple Locations for Brewing and Distilling Companies
Many Alabama breweries and distilleries are looking to expand to additional locations. Federal law allows for multiple locations, including the ability to serve beer at each location and transfer beer between locations. Existing Alabama law makes multiple locations difficult and inefficient. The Guild supports allowing multiple-location breweries and distilleries and to allow transfers between locations in compliance with federal law.
Allow Off-Site Tasting Rooms for All Manufacturers
Current Alabama law allows wineries to have an off-site tasting room separate from the primary winery location. It further allows an association of wineries to operate an association tasting room. The Guild supports allowing all manufacturers, including breweries and distilleries, to have an off-site tasting room. The Guild further supports allowing brewery and distillery associations to have an association tasting room to match the privileges allowed for a winery association.