Biz: A Beer Tax Cut?
By Chris Outcalt
Created 2012-07-16 10:30

By: Chris Outcalt [1]

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Biz: A Beer Tax Cut?

Sen. Mark Udall [2] stopped by Avery Brewing [3] on Friday to promote his plan to reduce the cost of producing a barrel of beer (31 gallons) by chopping the per-barrel excise tax. Udall wants to cut the tax in half for both small and gargantuan brewers—large breweries would now pay $9 per barrel and smaller brewers would pay $3.50. The idea, Udall says, is to free up money so that breweries can invest the dough into growing their companies.  

Visiting Avery to pimp his plan was a logical choice for Udall: The brewery recently received approval to construct a $27 million [4], 95,922-square-foot facility in Boulder. If that project doesn't scream "business is booming," we're not sure what does. A few other Colorado beer folk, including Brian Dunn [5], the owner of Great Divide [6], spoke about how lowering the tax [7] would help breweries hire new employees.

But the under-reported point seems to be this: This is likely even bigger news for the dozens of new breweries planning to open in Colorado in the next year. Last we checked, [8] there were 75 breweries in the planning stages. For a brand new business—beer related or not—saving a few extra bucks here and there can mean the difference between success or failure. If Udall gets his way and the tax is lowered, perhaps it would even spark a few more budding brew masters to give it a go.  A brewery in every neighborhood? Yes, please. 

—Image [9] courtesy of Shutterstock.

Follow assistant editor Chris Outcalt on Twitter at @chrisoutcalt.

Source URL: http://www.5280.com/blogs/2012/07/16/biz-beer-tax-cut

Links:
[1] http://www.5280.com/tag/authors/chris-outcalt
[2] http://www.markudall.senate.gov/
[3] http://averybrewing.com/
[4] http://www.dailycamera.com/news/boulder/ci_20650877?source=pkg
[5] http://www.5280.com/magazine/2010/08/my-kitchen-brian-dunn-founder-great-divide-brewing-company
[6] http://greatdivide.com/
[7] http://www.9news.com/news/article/277523/188/Udall-pushes-tax-break-for-brewers-large--small
[8] http://www.5280.com/blogs/2012/05/14/beer-buzz-colorados-brewing-business
[9] http://www.shutterstock.com