LOUISVILLE, Ky. — In less than 30 days, the recalibrated Federal Excise Tax for small breweries will expire. That'll take the tax per barrel of beer from $3.50 to $7.
The Kentucky Guild of Brewers says this increase could be a huge financial burden to our small brewery owners in Kentucky.
On the anniversary of the day Prohibition was lifted, a group of brewers in Kentucky is asking lawmakers to continue a recalibrated Federal Excise Tax.
"We've opened 30 breweries in the last two years so they've only known this 3.50 tax rate," Derek Selznick, with the Kentucky Guild of Brewers. "So for them, this is something they were not building into their business plan... something they've never experience, and especially for first-time business owners, effectively doubling one of their tax rates can be an absolutely crippling thing."
Every barrel of beer is 31 gallons. Some breweries in the Bluegrass are making thousands of barrels every year. This increase could cost them tens of thousands of dollars.
One of the brewers who could feel the tax increase is Jason Smith, the general manager of Gordon Biersch. He's focused on the smaller breweries in the Bluegrass who may have a much harder time getting by.
"I think it would be detrimental particularly to some of our small breweries," Smith said. "We're doubling that line and that's taking money away from the resources they need to continue to expand and grow their businesses."
Jason hopes Senator Mitch McConnell and Congressman John Yarmuth recognize the good breweries have done for Kentucky and the revitalization they've brought to our small rural communities.
"Within the state of Kentucky, we've seen many breweries pop up in small rural areas that have almost recreated downtown [areas] that have become community-centric, that have become huge parts of the community and we want to continue to see that grow," Smith said.
The guild of brewers says they have bipartisan support and hope our Kentucky lawmakers will continue in their support.
Contact reporter Hayley Minogue at hminogue@whas11.com. Follow her on Twitter and Facebook.
Make it easy to keep up-to-date with more stories like this. Download the WHAS11 News app now. For Apple or Android users.
Have a news tip? Email assign@whas11.com, visit our Facebook page or Twitter feed.