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dhacker
Senior Member
Username: Dhacker
Post Number: 1847
Registered: 11-2002
Posted From: 98.66.33.82
| | Posted on Monday, November 02, 2009 - 12:38 pm: | 
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The 1st annual Tennessee Cigar and Brew Fest was an overwhelming success. I had hoped for 300 folks for the 1st time out, but it was closer to 800! I'll put some pics up a little later.
Here's a question that has arisen from our accountant/ event coordinator. He is saying that in order to do this "By the Book", the samples given out are subject to a "Use" tax . . excise I suppose. In other words, we will need to back calculate the number of ounces poured at the event and divide that by the cost of the product to figure how much "Use" tax there is on all the beer consumed . . CRAZY!
Despite the fact it may be true for the commercial product served, my opinion is the home brew would be exempt . . or would it?? Since home brew can not be sold, it is not "In Commerce" per se. But, because admission was charged for an event serving home brew, does that now somehow put it "In Commerce" and make it subject to taxation? And then if it is in commerce, it is no longer home brew from a legal standpoint which brings up other issues.
My head is going to explode trying to figure all the 'what-ifs' . .
I'd like some opinions, though.
d
(Message edited by dhacker on November 02, 2009) |
Paul Hayslett
Senior Member
Username: Paulhayslett
Post Number: 2301
Registered: 02-2002
Posted From: 71.234.45.166
| | Posted on Monday, November 02, 2009 - 01:13 pm: |
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I am no lawyer, and even if I were, I wouldn't know state law for you, but I can tell you how I've seen things work here in CT.
In CT, if you charge admission to an event and give out homebrew only to attendees, then you are charging for homebrew and are breaking the law. Period.
The way around that is to make it clear that it is possible to get the homebrew without paying the admission fee. Kind of like those "no purchase necessary" contests at McDonalds -- if you don't want to buy the fries you fill out some sort of form instead.
For a more relevant example, we have an annual cask ale festival where a couple of local homebrew stores also serve samples. You have to trade a ticket for a pour at a commercial brewery's table but not at a store's table. I've also seen it done where different color bracelets get you into different tents at an event and all of the homebrews are in a tent requiring nothing more than an age check.
I think you need to check with a lawyer, and soon. I'm sure there is some way to retroactively fix your situation. But I'd get on on top of it now. And make sure you have it cleared up before the next event. |
Troy Robinson
Junior Member
Username: Troybinso
Post Number: 48
Registered: 10-2006
Posted From: 68.189.129.155
| | Posted on Monday, November 02, 2009 - 03:22 pm: |
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You can't pay excise tax on homebrew because that would imply that you made money off the homebrew, which is illegal. The only way to make money off of making beer is to be a licensed and bonded brewery. I'm not sure what the answer for you and your accountant is, but I would either talk to a lawyer, or kind of just be quiet about it and hope that nothing comes of it. |
Paul Edwards
Senior Member
Username: Pedwards
Post Number: 1802
Registered: 03-2003
Posted From: 76.240.206.135
| | Posted on Monday, November 02, 2009 - 04:27 pm: |
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In Indiana, all the beerfests that have had HB offered were mainly commercial beer tastings, so the HB was a very small part of the event, and the excise police really didn't care.
Now, maybe you could claim that the entry fee was for the cigar portion of the event, not for the HB which was given away at no charge.
Run that by your accountant (& your lawyer) |
Patrick C.
Advanced Member
Username: Patrickc
Post Number: 935
Registered: 01-2001
Posted From: 72.37.171.84
| | Posted on Monday, November 02, 2009 - 07:11 pm: |
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Hopefully the cigars all had valid tax stamps... |
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