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Posted by Dick Adams on August 24, 2008, 7:14 pm
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Over in the homebrewing newsgroups, the question
of legality of freeze alcohol arose. Don’t bother
looking it up. It’s illegal for someone without
the forms, approvals, and taxes mentioned below.
In response, I wrote the following with minor
editions. Please assume the premises are true.
Throughout the United States, its Territories, and its
Protectorates, anyone can produce any quantity of any
type of alcoholic beverages AS LONG AS THEY FILE ALL
THE FORMS, GET ALL THE APPROVALS, AND PAY ALL THE TAXES.
Because in the end, it is all about taxes.
Many States, Territories, and Protectorates offer
regulatory forbearance of these forms, approvals, and
taxes for low-level producers of certain beverages
that are restricted from market transactions.
Note: The standard annual tax forbearance is 50 gallons
of beer and/or of wine per adult with a limit of two adults
per household. Thus, the homebrewer would have a tax
exempt production of 200 750ml bottles per year. Please
do not laugh, but let us presume accurate recordkeeping.
There is a legitimate question of whether Mead comes
under beer or wine. IMRHO Mead is no more a honey wine
than beer is a malt wine.
It does occur to me that a homebrewer who set aside
100 750ml bottles annually for 40 years might leave an
estate of 4000 bottles of premium aged beverages. If
those bottles were inherited by someone who was not the
second adult in the household, could those bottles be
legally sold at auction subject possibly to only State
sales tax.
Dick
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