Legislative Updates


5-12-09

There is a proposed tax increase on MN breweries working its way through the legislature and we need your help to stop it!

Breweries producing more than 25,000 barrels of beer a year currently pay $4.60 per barrel in excise tax to the state. The proposed legislation raises this amount to $11.21 per barrel (an increase of 144%).

Minnesota is already taxed much higher than our neighboring states Wisconsin, Iowa, North Dakota, and South Dakota. Believe it or not our alcohol sales tax is already higher than both Boston and New York City!


  • - 40% of the cost of a beer in MN is already from taxes and the government wants to increase that
  • - When the federal government doubled the beer excise tax in 1991 60,000 jobs were lost in the brewing industry and across the industries tied to it.
  • - 65% of beer consumers earn less than $45,000 annually 
  • - Hurt lower income people who need the help the most
  • - Send business out of state
  • - Cause a loss of good-paying MN jobs
  • - Unnecessarily and unfairly target a single industry

The MN Craft Brewers Guild strongly opposes this measure and needs your immediate help:

1

Find your representative using the district finder tool:
http://www.gis.leg.mn/mapserver/districts/
   
2
Contact your State Representative and State Senator and tell them you oppose the proposed tax increase on MN breweries.
   
3
There is an independent group that is also opposing this measure as well. Visit their website: www.stopthemndrinktax.com and sign their online petition.
(note: the guild is not affiliated with this organization)
   
4
Join the Facebook group and follow the Twitter updates to stay in the loop and TELL ALL YOUR FRIENDS WHAT IS GOING ON.
   
5

Raise a pint of the best locally crafted brew to No New Beer Taxes!


Thank you for any and all of your efforts to keep MN a great place for beer!


Sec. 6. Minnesota Statutes 2008, section 297G.04, is amended to read:

297G.04 FERMENTED MALT BEVERAGES; RATE OF TAX.

Subdivision 1. Tax imposed. The following excise tax is imposed on all fermented malt beverages that are imported, directly or indirectly sold, or possessed in this state:

(1) on fermented malt beverages containing not more than 3.2 percent alcohol by weight, $2.40 $9.01 per 31-gallon barrel; and

(2) on fermented malt beverages containing more than 3.2 percent alcohol by weight, $4.60 $11.21 per 31-gallon barrel.

For fractions of a 31-gallon barrel, the tax rate is calculated proportionally.

Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages is entitled to a tax credit of $4.60 $11.21 per barrel on 25,000 barrels sold in any fiscal year beginning July 1, regardless of the alcohol content of the product. Qualified brewers may take the credit on the 18th day of each month, but the total credit allowed may not exceed in any fiscal year the lesser of:

(1) the liability for tax; or

(2) $115,000 $280,000.

For purposes of this subdivision, a "qualified brewer" means a brewer, whether or not located in this state, manufacturing less than 100,000 barrels of fermented malt beverages in the calendar year immediately preceding the calendar year for which the credit under this subdivision is claimed. In determining the number of barrels, all brands or labels of a brewer must be combined. All facilities for the manufacture of fermented malt beverages owned or controlled by the same person, corporation, or other entity must be treated as a single brewer.

EFFECTIVE DATE.This section is effective July 1, 2009.
Source: 2009 MN Session Laws - Ch. 77