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.
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Tax Cuts and Jobs Act Includes Tax Relief for Wine, Beer and Spirits Businesses
Included in the Tax Cuts and Jobs Act (H.R. 1) passed in late December were “Craft Beverage Modernization and Tax Reform” provisions that, among other things, reduced federal excise taxes for wine, beer and spirits businesses. These reductions expire at the end of 2019 unless extended by future legislation. While these changes may not have…
2017 Changes to Oregon Liquor Laws
This post was guest authored by Stoel Rives summer associate Antonija Krizanac.
Since the 2017 Oregon Legislative Session convened on February 1, 2017, the Legislature has introduced a variety of bills that impact the Oregon alcohol and beverage industry. Out of the countless proposed bills, five have already been signed by the Governor and will go into effect this year or early 2018 and may impact your business. Following is a summary of those bills.
House Bill 2150: Relating to electronic administration of alcoholic beverage tax provisions
House Bill 2150 requires the Oregon Liquor Control Commission (“OLCC”) to allow manufacturers or distributors of wine, cider, or malt beverages to file by electronic means:
- A statement of the quantity of wine, cider, or malt beverages produced, purchased, or received, and
- Payment of privilege taxes on such activities.
This alters the current filing and payment system, which is done on paper. The measure will apply to statements or privilege taxes due on or after July 1, 2019.
Effective date: January 1, 2018
Link to enrolled bill: https://olis.leg.state.or.us/liz/2017R1/Downloads/MeasureDocument/HB2150
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2017 Changes to Washington Liquor Laws Affecting Retailers
This post was guest authored by Stoel Rives summer associate Emma Vignali.
On July 23, 2017, numerous Bills will go into effect that will meaningfully impact alcohol and beverage retailers across Washington. Governor Jay Inslee will sign four bills that will create opportunities for alcohol retailers and simplify the licensing process for current and future licensees. Additionally, although not yet passed by the legislature, S.B. 5164 would expand the criteria under RCW 66.24.363 to authorize the issuance of a beer and wine tasting endorsement to small retailers of meat, seafood, poultry, and cheese. The following is a summary of some of the notable changes adopted in these bills. Note that many of the changes affect licenses, so we encourage anyone who sells alcohol in Washington to discuss these changes with their attorney.
Special Permit for Wine Auctions
H.B. 1718 amends RCW 66.20.010 to improve the process for non-profits hoping to hold wine auctions at their charitable events. While the previous process for holding wine auctions proved strenuous for many non-profits, this Bill simplifies the process by creating a special permit specifically for private wine auctions. The special permit allows non-profits to auction wine for off-premises consumption and to provide auction guests with tasting samples of the wine to be auctioned at the event. More than one winery may participate in the auction, but each must be listed on the application for the special permit. A $25.00 fee will be charged for each winery listed on the permit. Non-profit organizations considering holding a private auction should be sure to apply for a permit prior to the event.
Continue Reading 2017 Changes to Washington Liquor Laws Affecting Retailers
Idaho District Court finds beer and wine “sub-distributorships” should be afforded same protections for distribution rights as distributor
Beer and wine distributorships are protected under Idaho franchise laws, like the majority of other states, from having their distribution rights terminated unless the reason falls within one of those enumerated under Idaho franchise laws. Without one of the listed reasons, a distributor cannot involuntarily lose its distribution rights. This franchise protection has increased the…
Raising water conservation awareness by drinking beer
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.
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Five Important Trademark Lessons the Beverages Trade Learned in 2014
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.
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Attending the Craft Beverage Expo: A Few Reasons Why You Should!
The Craft Beverage Expo is right around the corner, and there is still time to register! This inaugural event takes place in San Jose, CA on May 6 – 8, 2014, and the Stoel Rives Beverage & Hospitality Group has you covered! We are pleased to offer our blog subscribers a $100 discount off…
Distribution Agreements: Cover Your Bases!
Before entering into a distribution agreement, alcohol beverage producers should do their homework. Here is a list of questions to ask a potential distributor:
- Where are you doing business as a distributor?
- How long have you been in business?
- How did you get started?
- Is your state a franchise state?
- Are you affiliated with a
…
Dinner and a Movie for the Whole Family!
Movie theaters with restaurant-style food service will reach a broader audience with the recent signing into law of a bill passed by the Washington State Legislature allowing service of food and alcoholic beverages to their patrons. The law as currently written allows some service of alcohol in movie theaters, but requires exclusion of minors from the premises. The new law will create a new, more family friendly, beer, wine and spirits license for theaters. The license will allow minors if certain conditions are met and approved by the Washington State Liquor Control Board, such as submission of an alcohol control plan outlining the methods to prevent minors from obtaining alcohol, similar to plans that are required for clubs and show venues that host all‑ages concerts. Theaters will also be required to meet food and service requirements, similar to restaurants, to qualify for the license. (Senate Bill 5607 as Passed by Legislature)Continue Reading Dinner and a Movie for the Whole Family!
Starbucks to Start Selling Beer and Wine in California
Expanding on its pilot programs in Seattle and Portland, Starbucks will begin selling wine and beer at a few select locations in Orange County, CA by the end of this year. The program will reportedly sell California vintages and micro-brews. You can read more about the story here and can I get that in a…