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Cider Digest #1672
Subject: Cider Digest #1672, 19 November 2011
From: cider-request@talisman.com
Cider Digest #1672 19 November 2011
Cider and Perry Discussion Forum
Contents:
Re: Anybody (US) making/selling under 27 CFR 24.76? (Nat West)
BATF on cider (27 CFR 24.76) (chris horn)
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Digest Janitor: Dick Dunn
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Subject: Re: Anybody (US) making/selling under 27 CFR 24.76?
From: Nat West <natjwest@gmail.com>
Date: Mon, 14 Nov 2011 19:54:46 -0800
Dick, I asked the TTB about that myself just this year. I asked:
I am trying to understand the application of this regulation. I am opening
a bonded winery (cider-only) and can't figure out if this regulation
exempts me from all TTB taxes, or just exempts me from the wine-specific
tax ($1.07/gal) and I still have to pay the cider-specific tax
($0.226/gal). Can you provide clarification?
The reply was:
You are not exempt from paying taxes on the cider that you are producing
as you are producing it at a winery and treating it as a ?wine?. The tax
rate that you will use is $.226 unless you produce under 250,000 wine
gallons per year then you are eligible for a small producer credit on the
first 100,000 wine gallons that you remove. The effective tax rate will be
$.056 with the small producer credit being taken into consideration.****
- -Ronda Merrell, MPA
I did not follow-up with her with a question of why I'm automatically
"treating it as a wine". I believe it has to do with the magic 7% number
which I did not mention in my previous query. I will do so now actually.
- -Nat West, Portland Oregon
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Subject: BATF on cider (27 CFR 24.76)
From: chris horn <agent_strangelove@hotmail.com>
Date: Wed, 16 Nov 2011 15:51:30 -0800
Some years
ago (Dec. of 1997) I asked the BATF about 27 CFR 24.76. I got a nice letter
back from Bernard J. Kipp, Special Inspector of the Portland Oregon Office.
He stated
in part:
'A
legislative history of this matter indicates that the manufacture and sale of
tax-free hard cider was confined to a traditional normal alcoholic fermentation
of the juice of sound ripe apples during the fall of the year by farmers and
sold at road side stands. This was a product made by people who were not in the
wine business and therefore it could be made outside of a bonded winery and not
subject to federal tax.
A few main
prohibitions to remember when making cider under this exemption are: cider must
be made from fresh juice, not concentrate; No preservative methods
(concentration) or materials (sulphur dioxide) can be used; and the product
must be noneffervescent (no carbon dioxide added.)'
The letter
went on to state I should contact the state liquor folks (the Oregon Liquor
Control Commission) for their stance on this subject. I got a letter back from
the state commission, in which they blew a gasket thinking that anyone would
dare think to produce alcohol without their blessing...
Chris Horn Scappoose Oregon USA
'People forget how fast you did a job - but they remember how well you did
it.'
-Howard Newton
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End of Cider Digest #1672
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