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WTF is going on with this excise tax?

Discussion in 'Midwest' started by elshaggy, Apr 17, 2013.

  1. If ANYBODY has skin in this game it's Joe Schmoe.
  2. I'm in the business. I run a bar. I have less to lose than you. Why? Because when the breweries raise their prices to the distributors, the distributors will raise the price to me and then I'm going to have to raise the price to you. You are the last denominator in this equation. Unfortunately, the consumer pays the ultimate price. I don't want to raise my prices, neither do distributors and breweries, which is why we industry people are exposing this tax increase on a very public level.
    grantcty likes this.
  3. OneBeertoRTA

    OneBeertoRTA Advocate (660) California Jan 2, 2010 Subscriber Beer Trader

    Excise tax on beer and wine are trivial compared to spirits. Hopefully it stays that way...

    Although, the Minnesota proposal of almost $28 per barrel is definately an increase. Just imagine if the federal excise tax was close to spirits at $28 per case (80 proof 12 bottles) and then you had the ridiculous state excise on top.
  4. MNPikey

    MNPikey Advocate (610) Minnesota Feb 27, 2011 Beer Trader

    DFL controlled state senate passed the $1.8 billion tax increase.
  5. MNPikey

    MNPikey Advocate (610) Minnesota Feb 27, 2011 Beer Trader

    That is THE tax bill that includes the liquor tax increase.
  6. The House version contains the liquor tax increase. The state senate and Gov. Dayton's proposals do not.
  7. MNPikey

    MNPikey Advocate (610) Minnesota Feb 27, 2011 Beer Trader

    oh, I see. Story in the Strib was somewhat confusing.
  8. incutrav

    incutrav Savant (315) Minnesota Jan 16, 2007

    Is it accurate that if a brewery produces under 200k BBL/yr they would be exempt from this?

    Currently no MN brewery would apply if that is the case, but would change in the near future for Summit/Schells Im guessing.
  9. JohnBierman

    JohnBierman Savant (265) Minnesota Sep 27, 2006

    I have something to lose if this tax gets passed. Here is a copy of the letter that I sent to my representative.

    Dear Ms. Moran,

    I am a homeowner in the Frogtown neighborhood of St Paul. I am also an employee of Summit Brewing. I am reaching out to you today, in order to ask that you do not vote in favor of the beer excise tax that is currently proposed in the house.

    competitive landscape of our business has changed over the last few years. There are currently more breweries in operation in MN than there has been at anytime in our history. There are also many more in the development stages. Many of our competitors are eligible for a small brewer excise tax exemption. If this tax is passed, we will not be able to compete with the price point of many of our smaller competitors. That would cost us business.
    Summit brewing is an asset to your community. Our contributions to the local arts community number in the 10's of thousands of dollars. We donate our space weekly to community and non-profit events. We make great efforts to make our facility as environmentally friendly as possible. Last, we continually add new members to our staff. Many of them from St Paul like myself.
    My position at Summit is in the sales department. I believe this tax will directly affect my household income. I am an employee that sees bonus dollars tacked on to my paycheck, as long as sales continue to grow. Our kegs are sold to retail for $121. As I understand it, this proposed tax would be an increase of $27.75 per barrel. That is close to a 30% price hike. I could not blame any our retail partners for switching to a product made by one of our smaller competitors, if this tax goes through. Please help me! I want to stay rooted in the Frogtown community. I pay my bills and am continuing to invest in my home, even though the valuation of my house continues to plummet. This will no longer be possible if my income is reduced.
    Jon Landers
  10. supercolter

    supercolter Advocate (540) Wisconsin Apr 19, 2006 Beer Trader

    Call these jerks up. Governor Dayton 651-201-3400 / State Senate 651-296-0504 / State House 651-296-2146.
  11. zeledonia

    zeledonia Advocate (590) Washington Nov 23, 2008 Beer Trader

    Is your math right? $27.75 per barrel is $13.875 per 1/2 barrel. Are your kegs 1/2 barrel? If so, then it's an 11.5% hike. That is still a BIG increase, and would clearly put the brewers subject to it at a huge competitive disadvantage.
  12. JohnBierman

    JohnBierman Savant (265) Minnesota Sep 27, 2006

    To clarify, I heard the increase in our product would be $27.75 per 1/2 barrel. I did not expect my local representative to know that a normal size keg was a 1/2 barrel.