It’s time to modernize Arizona laws to provide fairer tax treatment for spirits RTDs!
Spirits-based ready-to-drink (RTD) cocktails are booming, but in Arizona, spirits RTDs are taxed at a rate 18 TIMES HIGHER than malt- (beer)-based RTD beverages, even though many spirits RTDs contain the same or lower amounts of alcohol.
This state-level tax disparity is ON TOP OF a federal-level tax disparity, where spirits RTDs are taxed at MORE THAN TWICE the rate of beer- and wine-based RTDs.
All of this excessive tax burden falls squarely on local producers and consumers like you. Despite growing demand for spirits RTDs, a recent DISCUS survey found that nearly two-thirds (62%) of craft spirits distillers say they are not producing spirits RTDs due to these higher tax rates, which create a barrier to entry in the market.
Fair tax treatment will boost small businesses, including the 30 craft distilleries in Arizona and support consumer choice!
Take action TODAY to ask your legislators to support HB 2769 which would provide fairer tax treatment for spirits RTDs.