Beer laws and taxes

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

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  1. FosterJM

    FosterJM Initiate (0) Nov 16, 2009 California

    Who?

    Cheers!
     
  2. tozerm

    tozerm Initiate (0) Jul 1, 2005 Washington

    While this is potentially true, it doesn't deal with the original message that was quoted.. "This saves a TON of money in the long run."

    Bottom line, self-distributing, once you factor in fuel, vehicles, time, energy, and labor costs, is no more profitable than distributing through a distributor.
     
  3. tozerm

    tozerm Initiate (0) Jul 1, 2005 Washington

    By definition sales through tasting rooms are not "distributed" at all. That is 100% retail business. The term "distribution" implicitly means wholesale.
     
  4. chcfan

    chcfan Initiate (0) Oct 29, 2008 California

    They have "alcohol laws of 'state x'" on wiki but only for a handful of states. I'm not sure if anyone's taken the trouble to combine all states into one spot. Lets turn this thread into that reference material by filling it with misinformation! I'll start with a general summary of PA "to go" laws (which may not be 100% accurate, but close)

    PA: Most beer is purchased by the case from "distributors" AKA case stores. Beers smaller than 22oz must be sold as cases of 24. Most "distributors" are retail only. Some distributors are traditional B2B-only (mostly the B2B ones are importers of specific brands) and some sell both retail and to other accounts.

    Smaller amounts can be purchased from places with a takeout license. Most are bars or restaurants, but a few grocery stores (and Sheetz?) have met the requirements to sell takeout beer (selling food and seating for 30 amongst others) by separating a section of the store where the beer is sold. This is only at a handful of the 100s of grocery stores across the state. At non-case takeout places, there is a max of 192oz per purchase, but apparently there's no concession in the law stopping people from making multiple 192oz purchases.

    Liquor and Wine can only be purchased at state-owned-and-run stores called Wine and Spirits.

    The only restrictive growler law I know of is for a specific brewery license where the brewery's label needs to be on the growler. I believe breweries with that license used to be required to sell beer by the case, but that is one stupid law that was mercifully changed. Brewpubs and bars can legally fill any growler, though some have policies against this.

    Not 100% specific to "to go" but there is no license that allows a proprietor to sell beer without also selling food, so there are technically zero "true" bars in the state.

    No idea on the taxes. One would assume that they are high given our high prices compared to pretty much every other part of the country, but I think they're more a byproduct of the wacky laws.
     
  5. hopfenunmaltz

    hopfenunmaltz Pooh-Bah (2,647) Jun 8, 2005 Michigan
    Pooh-Bah

    In Michigan only brewpubs and microbrewery licenses can fill growlers - no bars or stores. It turns out that a "brewers" license (>60k barrels a year) can not fill growlers - Bells has the only Brewers license in the state, which explains no growler fills at the Cafe. You can walk over to the General Store and buy as much beer by the bottle or 5L minikeg that you want.

    There are so many differences in laws from state to state, one would have to do a lot of research.

    There a more states that allow self distribution than not. Here is a breakdown.
    http://www.brewersassociation.org/pages/government-affairs/self-distribution-laws

    California allows self distribution. If you know that Sierra Nevada is the largest Craft Brewer in CA, you might also know that they distribute in Chico. That's it.
     
  6. dgs

    dgs Initiate (0) Jul 18, 2005 Pennsylvania

    Re: PA

    It's not the taxes - PA is among the lowest.

    [​IMG]
     
  7. rlcoffey

    rlcoffey Savant (1,207) Apr 20, 2004 Kentucky

    There is a big problem with that map.

    For example, it shows KY as very low, which is true. FOR EXCISE TAX. But KY also has a 11% distributor tax, which might as well be an excise tax. But its different from the excise tax, so isnt included above.

    KY has a $2.50 per bbl excise tax, which works out to the 8 cents per gallon shown above.

    However, if, for example, a distributor sells a case for $35, that works out to $1.71 per gallon in distribution tax, which puts KY higher than AK.

    Plus a 6% sales tax.

    I assume other states have similar taxes though, but I doubt KY ends up as low as that map shows them.
     
  8. savagewhisky

    savagewhisky Initiate (0) Aug 8, 2007 Virginia

    The Tax Foundation has some good data regarding state-by-state taxes http://taxfoundation.org/blog/monday-map-state-beer-excise-tax-rates-0
     
  9. marquis

    marquis Pooh-Bah (2,313) Nov 20, 2005 England
    Pooh-Bah

    It amazes me that there are such differences in a single nation.Even the EU with all its member states, is easier to negotiate.Basically taxes vary from place to place but free movement is allowed and I know no restrictions anywhere about getting containers filled.
    It's quite common for people in the south of England to get a ferry over the channel , fill the car with drink and tobacco at very low French tax rates, return home and be well in pocket.All quite legal.
     
  10. leedorham

    leedorham Initiate (0) Apr 27, 2006 Washington

    That's a federal crime on this side of the Atlantic. Bootlegging cigarettes from North Carolina to northern states has become more profitable for organized crime than selling hard drugs.
     
  11. marquis

    marquis Pooh-Bah (2,313) Nov 20, 2005 England
    Pooh-Bah

    As long as the goods are bought tax paid (at the prevailing rate at the place purchased) and they are for personal consumption they can be moved freely within the EU.
    Of course, some does get sold on , this is illegal, but the penalties for bootlegging are trivial compared to dealing in hard drugs.And profits are high.
     
  12. erichall

    erichall Initiate (0) Nov 13, 2008 Kentucky

    And local cities of the 4th and lower class can enact up to a 5% gross receipts alcohol tax. I have a store in (newly wet) etown and we have a 6% sales tax AND a 5% city alcohol sales tax on the retail level (11% retail sales tax). Add the 11% dist tax and excise tax and we are one of the most heavily taxed places alcohol is sold.
     
  13. VncentLIFE

    VncentLIFE Initiate (0) Feb 16, 2011 North Carolina

    I know in NC, you cannot repackage a beer. So once its kegged, it must be sold as draft. to get a growler, you must either buy it as such (in a store, bottle shop, or grocery store) or go to the brewery. I think it hurts sales, honestly.
     
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