It’s time to modernize Minnesota laws to provide fairer tax treatment for spirits RTDs!
Spirits-based ready-to-drink (RTD) cocktails are booming, but in Minnesota, spirits RTDs are taxed at a rate 33 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 nearly 40 craft distilleries in Minnesota and support consumer choice!
Take action TODAY to ask your legislators to support SF 2537 which would provide more fair tax treatment for spirits RTDs.