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Senator Wyden Sponsors the Craft Beverage Modernization and Tax Reform Act

Senator Wyden Sponsors the Craft Beverage Modernization and Tax Reform Act

Sen. Ron Wyden, D-Ore., has introduced legislation that would promote continued job creation in the growing craft beverage, cider, wine and distillery industries throughout Oregon and the country.

The Craft Beverage Modernization and Tax Reform Act, S.1562, would cut taxes and modernize outdated regulations for craft brewers, cider makers, vintners, and distillers.

In Oregon, wineries, breweries and distilleries are responsible for an estimated 40,000 jobs collectively and generate about $6 billion annually in revenue.

In addition to providing tax relief for Oregon’s wineries, breweries and distillers, this legislation would also reduce compliance burdens for craft beverage producers by exempting nearly 90 percent of all industry members from complex bonding and bi-weekly tax filing requirements.  The bill would exempt aged beers, ciders, wines, and spirits from complicated and burdensome accounting rules.  It would reform rules on brewers to encourage more collaboration and streamline regulations.  And it would equalize the playing field for all distilled spirits producers.  Finally, this bill would cut administrative backlogs by ensuring the Alcohol and Tobacco Tax and Trade Bureau, which is charged with regulating these industries, is sufficiently funded.  Having a more fully staffed TTB would likely have a big impact on how long it took for a new business to start up.  Additional enforcement funding and authority would help offset the cost of this bill by cracking down on tax cheats.