Late last year, the President signed the Taxpayer Certainty and Disaster Tax Act of 2020, which made most of the Craft Beverage Modernization and Tax Reform Act (“CBMTRA”) provisions permanent starting January 1, 2021.  The CBMTRA makes extensive changes to the federal excise taxes on wine, distilled spirits, and beer.
Continue Reading Significant Tax Credits for the Alcoholic Beverage Industry

As we wrote about earlier this month, the Tax Cuts and Jobs Act (H.R. 1) passed late last year included significant, temporary federal excise tax relief for wine, beer and spirits businesses for 2018 and 2019.  Unfortunately, in an apparent oversight of legislative drafting, the wine excise tax relief (provided in the form of

For years, the City of Portland has had an expansive, complex and restrictive regulatory system for parking in the Central City. However, in an effort to promote better utilization of Central City parking spaces, the City is currently considering substantial simplification of its Central City parking code, which hotels may benefit from.

Historically, hotels selling onsite parking spaces to non-guests were potentially vulnerable to zoning code enforcement actions prohibiting rental of those spaces to persons not patronizing the hotel. Because a hotel might not be able to prove that the rental of parking spaces to non-guests was a legal, nonconforming use, predating the City’s extensive parking regulation system, a hotel might be ordered to cease renting spaces to downtown drivers without “business” at the hotel site. Things may, however, become easier.

The proposed parking regulation changes are part of the City’s Central City 2035 planning process. The published draft being discussed by the City’s Planning and Sustainability Commission removes Residential/Hotel as a parking type and instead includes Residential/Hotel parking in the Growth Parking designation. Whereas the existing code requires that Residential/Hotel parking be accessory to the residential or hotel use, serving users of the residence or hotel, Growth Parking is proposed to be available for both accessory and commercial parking at all times so a hotel could, for example, rent its parking spaces to people attending an offsite show or employees of a neighboring business and not risk running afoul of the zoning code.
Continue Reading Proposed Parking Changes Will Increase Portland Hotels’ Flexibility to Utilize Parking Assets

Significant changes are on the way for Liquor Laws in Utah.  H.B. 442 passed the legislature on March 8, 2017 and Governor Herbert signed it into law March 29, 2017.  The new law makes numerous changes to how restaurants, dining clubs and off-premise beer retailers will operate.  These changes will create opportunities for some, and present significant challenges for others.  Following is a summary of some of the more meaningful changes for businesses.  Note that the law affects many licensees though, so we encourage anyone who sells alcohol in Utah to discuss the changes with their attorney.

Restaurants and Bars

The law replaces the current Restaurant – Dining Club – Social Club structure with two categories: Restaurants and Bars, making Dining Clubs obsolete.  Bars and restaurants will have to start displaying an 8.5 x 11 sign declaring that they are either a bar or a restaurant, and not the other.

On the good news front, restaurants will be able to choose how they want to operate their own bars from the following three options:
Continue Reading 2017 Changes to Utah Liquor Laws

Good news for the cider industry with today’s passage of the CIDER Act.  The CIDER Act provides a much needed update to the tax and regulatory framework cider.  To date, the regulatory framework and tax structure for cider has been known to cause cider makers angst given how cider is characterized under the law.  Now,

The Pacific Northwest Cider Awards (PNWCA) held its second annual cider competition on June 5 and 6 in Seattle. On Friday, June 5, a panel of twenty judges made up primarily of media and cider enthusiasts headed to Seattle Capitol Cider to taste about 145 products in multiple cider categories. Over 35 cideries from the Pacific Northwest participated in the PNWCA. On Saturday, June 6, following the awards, Seattle Cider Company opened its tasting room doors — “The Woods” — to the public and featured 30 ciders from the cideries participating in the PNWCA festival.

The ciders were registered in 14 distinct categories, with gold, silver and bronze medal awarded in almost every category. Each judging panel was made up of 4 or 5 judges who tasted through 2 or 3 categories each. All judges then participated in a second tasting featuring the gold medals of each category to designate the “Best in Show” medal for the 2015 competition. This year’s winner was Wandering Aengus Ciderworks “Bloom,” a cidery based in Salem, Oregon. The complete results of the PNWCA can be found here.

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Continue Reading 2nd annual Pacific Northwest Cider Awards: A celebration of creativity and diversity.

Clean Water Services (CWS), a water resources management utility in the Tualatin River Watershed, has been creatively exploring a new opportunity for the brewery industry. CWS is taking beneficial reuse of water to a new level by proposing the reuse of recycled water in the brewing process, a proposal first approved by the Oregon Health Authority in September 2014.

The reuse of recycled water in the brewing process has found support in various Oregon organizations: tests showed that the proposed treatment presents very low risk to human health, promotes the importance of conserving water, promotes the need to engage a dialogue about potable reuse, and would help meeting the growing demand for beers. The proposal has the potential to create a new market but raises a few issues.

Health and Sanitary Concerns

The recycled water must be treated to meet or exceed all regulated drinking water contaminant criteria. The analysis regarding the recycled water used to brew small batches of beer revealed that the water was at least as pure and clean as regular water used from municipal resources, and the Oregon Environmental Quality Commission approved the experimentation. A round of public comments on the question was held mid-April 2015. One of the concerns was that wastewater contains “emerging contaminants” that are not regulated by the Safe Drinking Water Act or the Clean Water Act, and consequently, while the recycled water could meet technical drinking water requirements, it still could pose a threat to human health because some of the contaminants are not addressed in those requirements.

The Oregon Department of Environmental Quality (DEQ) is currently revising CWS’s permit requirements to address these issues and make sure that all risks to human health are eliminated when using recycled water in beer production.
Continue Reading Raising water conservation awareness by drinking beer

The folks at the U.S. Patent & Trademark Office (“PTO”) received nearly half a million trademark applications last year. These applications included thousands of new filings by breweries, vineyards, wineries, and distilleries. Here are five important lessons we learned from last year’s decisions by various trademark tribunals about protecting and registering your mark in the beer, wine or spirits industries.
Continue Reading Five Important Trademark Lessons the Beverages Trade Learned in 2014

Can one brewery sue another to stop them from using a stylized version of “IPA,” a familiar acronym for the popular style of beer known as India Pale Ale?  As you may have heard, the Lagunitas Brewing Co. just tried  . . . and it didn’t go so well.  But things could have worked out very differently if Lagunitas had raised its claims back in 1995, a time when Lagunitas says it was the only one using “IPA” to market an India Pale Ale.

On Monday, The Lagunitas Brewing Co. filed suit against fellow California craft brewery Sierra Nevada Brewing Co. for trademark infringement in an attempt to prevent Sierra Nevada from rolling out a new label for Sierra Nevada’s “Hop Hunter IPA”.  Lagunitas claimed Sierra Nevada’s label depicted “IPA” in a style that was too similar to the way “IPA” appears on the label of Lagunitas’ flagship “Lagunitas IPA”.

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Sierra Nevada’s design, Lagunitas argued, “uses all capital, large, bold, black ‘IPA’ lettering in a font selection that is remarkably similar to the Lagunitas design” and was likely to create confusion among consumers as to the origin of Sierra Nevada’s product.

By Wednesday, Lagunitas had dropped the case, citing the overwhelming public uproar over its claims:  “Today was in the hands of the ultimate court; The Court of Public Opinion and in it we got an answer to our Question; Our flagship IPA’s registered federal trademark has limits.
Continue Reading Despite What You May Think, “IPA” Really Could Have Been a Trademark for Beer

My colleagues Ryan Waterman and Parissa Ebrahimzadeh have evaluated the potential impacts of the new California industrial storm water permit on breweries, distilleries, and wineries in the state.  See below for their report.

On April 1, 2014, the California State Water Resources Control Board (“State Board”) unanimously adopted a new Industrial Storm Water permit (2014 Permit). You can find the new Industrial Storm Water permit and supporting documents here, along with a change sheet also adopted by the State Board.

By way of background, the federal Clean Water Act prohibits certain discharges of storm water containing pollutants except in compliance with a permit. The 2014 Permit is a state-wide permit (called a “general” permit) for all covered industrial facilities in California. Covered industrial facilities must comply with the 2014 Permit when it comes into force in order to be in compliance with the Clean Water Act. 

The 2014 Permit completely re-writes the prior 1997 Industrial Storm Water permit (1997 Permit), and includes many substantive changes. In particular, the 2014 Permit will vastly increase the number of industries affected and impose new and increased compliance requirements.

That is one reason why California breweries, distilleries, and wineries need to know about the 2014 Permit.Continue Reading Why California Breweries, Distilleries, and Wineries Need to Know About California’s New Industrial Storm Water Permit

Beginning July 1, 2014, Idaho distilleries will be allowed to provide samples of their products at their manufacturing facilities, as has been permitted at breweries and wineries throughout the state of Idaho for quite some time. There are some conditions on the samples offered by a manufacturer: (1) the samples must be free; (2) samples