Beer laws and taxes

Discussion in 'Beer Talk' started by GatorBeer, Jul 19, 2012.

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  1. GatorBeer

    GatorBeer Initiate (0) Feb 2, 2010 South Carolina

    I was wondering if anyone has a comprehensive list of state by state beer laws and/or taxes. This is mainly for my interest, partly because I was wondering where the best place to start a brewery would be. If nobody does, perhaps you could cite the beer laws for your own state.

    For instance in Florida:
    -No growlers can be filled in volume from 32 oz to 128. So essentially we're not allowed 1/2 gallon growlers.
    -You can only sell growlers at the point of production. For instance, a bottle shop with taps can't fill growlers because they didn't make the beer. But a brewery can fill them at the brewery.
    -Florida taxes 48 cents a gallon on beer.
     
  2. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    There's gotta be a website somewhere. Try Google.
     
  3. GatorBeer

    GatorBeer Initiate (0) Feb 2, 2010 South Carolina

    Believe it or not I already looked on google, but thanks for the suggestion. I found an out of date tax sheet from 2010, but nothing comprehensive for beer laws. I was hoping either I missed it or we could put together something that would be a rough comprehensive guide
     
  4. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    You'll have to Google "alcohol laws" and pick out the beer info yourself. It's there.
     
  5. alexipa

    alexipa Initiate (0) Oct 7, 2011 Colorado

    One of the most important things to check for a new brewery is if you can self distribute. This saves a TON of money in the long run. I know you can in Colorado, but that's all I know.
     
  6. GatorBeer

    GatorBeer Initiate (0) Feb 2, 2010 South Carolina

    I am capable of using the internet and know I could go to each and every state's bylaws and sort through the jargon but I don't really fancy reading 50 different codes then trying to decipher it. I was hoping the BA community could source this a little more easily if everyone knew something about their own state.
     
  7. kmello69

    kmello69 Initiate (0) Nov 27, 2011 Texas

    I dont know if such a "quick" overview could even exist, since there is so much information for each individual state. I just did a quick search for this information in my state of Texas, and found a document that is about 8 pages long and still isnt totally comprehensive.
     
  8. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    I'm not trying to talk down to you. Just take a look at it - it's in chart form.
    If you heard from just one person in all 50 states, you would still have to read 50 different codes. And you will hear from more than one person in many states, thereby increasing your reading and increasing the possibility of getting various information for a particular state.
     
  9. SammyJaxxxx

    SammyJaxxxx Initiate (0) Feb 23, 2012 New Jersey

    A "quick" over view would be difficult. The licensing laws will be in one part of the state's statutes and the tax laws may be in another part. Additionally, there may be an entire additional layer of regulations and fees by the county and/or municipality.

    Here is a statute currently pending in NJ that would allow brewers to sell at the brewery an offer samples on tours. (The underlined parts are the addition to the law) http://www.njleg.state.nj.us/2010/Bills/A4000/3520_I1.PDF
    There is also a bill pending in NJ that would allow some self distribution.
     
  10. maltmaster420

    maltmaster420 Initiate (0) Aug 17, 2005 Oregon

    That's almost the exact opposite of reality. Self-distribution can be beneficial in the short run, but it quickly becomes a logistical nightmare once you expand beyond your city, which is everyone pretty much everyone signs on with a distributor sooner or later.
     
    tozerm and chcfan like this.
  11. lvoutlawjlh

    lvoutlawjlh Initiate (0) Mar 15, 2012 Nebraska

    If I was opening a brewery, I'm pretty sure I wouldn't rely on the BA community for law and tax advice. Get a lawyer son if you're serious about doing this. Goodluck!
     
    tronto, LiquidTable and SammyJaxxxx like this.
  12. SammyJaxxxx

    SammyJaxxxx Initiate (0) Feb 23, 2012 New Jersey

    I have never owned a brewery, distributor or bottle shop, so this is my opinion without any factual basis whatsoever.

    It seems that in the begining self distribution would be important so that you can get your product "out there." If you aren't "out there" there will be no demand and a distributor is not going to be interested in distributing your product.
    However, once you create a demand, you need the distributor to get your product into bigger stores and bars, restauraunts etc.
     
  13. leedorham

    leedorham Initiate (0) Apr 27, 2006 Washington

    I can actually see this evolving as the number of breweries increases. The wine industry is full of self-distributed wineries that basically don't distribute beyond their tasting rooms. Granted, they are all fairly small, but the smaller ones have figured out that keeping things modest and raking in huge margins is the way to go.

    Say you run a successful brewpub and have been for years. You bottle your beer, self distribute, and your kids are taking new cars with them to private college. If people want your beer, they come to you. Unless you are a success-driven nut (not saying there aren't plenty of those) there would be no reason to hook up with a distributor.
     
  14. SammyJaxxxx

    SammyJaxxxx Initiate (0) Feb 23, 2012 New Jersey

    Come on. Who better to get tax and legal advice from than strangers on an internet forum?
     
    5thOhio, kmello69 and lvoutlawjlh like this.
  15. alexipa

    alexipa Initiate (0) Oct 7, 2011 Colorado

    If you are distributing outside of your city, you no longer need help from an online beer forum.

    Since he wanted help I was making the assumption he would start small with limited capital. In this case, the best way to start is serving beer on site and self distributing. Beyond the savings on licenses and taxing, it's also much easier to handle the logistics and accounting.

    My use of the phrase "long run" was misleading, I meant the long run of being a start up nano brewery. This obviously all changes once you're looking at wide distribution.
     
  16. maltmaster420

    maltmaster420 Initiate (0) Aug 17, 2005 Oregon

    Precisely, which is why I said it's beneficial in the short term. As you said, it is a great way to get your name out there and connect with all the local bar and bottle shop owners that serve as your initial base of support. However, sooner or later the hassles of maintaining delivery vehicles, hiring drivers, figuring out efficient delivery routes, etc outweighs the extra profit margin you get by going it alone. For all the crap people like to fling at the distributors, most of them are very, very good at what they do, and if it weren't for their economies of scale and massive fleets you would see a lot less variety on your local shelves.

    Back to the OP's question: I would be more concerned with finding a market in need of another brewery than finding places with the most favorable laws. Using FL as an example, I'm sure Cigar City would love to fill 64oz growlers, but they seem to be growing just fine without them. As long you make great beer and know how run the business side of things (or hire someone who does), people will find a way to get their beer in their bellies.
     
  17. GatorBeer

    GatorBeer Initiate (0) Feb 2, 2010 South Carolina

    This thread got out of hand quickly. For what its worth, I'm not planning on opening a brewery.

    I wanted this for curiosity's sake. Because the laws are so asinine in FL I was wondering what it was like in other parts of the country.
     
    Mavajo likes this.
  18. leedorham

    leedorham Initiate (0) Apr 27, 2006 Washington

    This is out of hand? Brutha, it ain't out of hand until Scarlet makes an appearance :wink:
     
  19. kmello69

    kmello69 Initiate (0) Nov 27, 2011 Texas

    It's asinine here too.
     
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