Рет қаралды 2
Calling all Beverage Fans, especially those who enjoy Hard Cider and not just apple flavored but flavors like blueberry, cherry, and more. Some of these fun flavors are subject to a high beverage tax due to higher carbonation that classifies them as champagne - YES, crazy right! Hard Cider out of a can or tap is not Champagne and small business producers should NOT have to withhold delicious flavors due to a tax called The Bubble Tax.
The Bubble Tax unfairly classifies carbonated hard ciders with fruit flavors as “champagne,” imposing a tax rate of $3.30 per gallon - 14 times higher than beer and significantly higher than plain apple or pear ciders. This tax burden restricts small cider producers like Geoffrey Deen owner of Hardball Beverage from innovating and competing with beers and seltzers, despite being sold in the same market.
The Bubble Tax Modernization Act (H.R. 7029) seeks to reduce this tax and align cider taxation with its market competitors. This change will LOWER PRICES, expand FLAVOR offerings, and SUPPORT small businesses and local agriculture.
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Thank you! #hardcider #cidercon #smallbusiness #craftcider
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B.Y.O.B.
Brew Your Own Business
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Top 5 Bubble Tax Modernization Act Takeaways:
1. The Bubble Tax Problem:
The federal government classifies carbonated hard ciders with added fruit flavors as “champagne,” subjecting them to a tax rate of $3.30 per gallon, which is significantly higher than the $0.22 per gallon tax rate for pure apple or pear ciders. This taxation mismatch severely impacts cider producers’ profitability and competitiveness with beer and malt beverages.
2. Consumer Perception vs. Classification:
Consumers view and purchase hard ciders alongside beer and seltzers, expecting similar carbonation and flavors. However, regulatory bodies classify cider differently-federally as “apple wine” and at the state level as a malt beverage-causing inconsistencies in taxation and distribution systems.
3. Impact on Small Businesses:
The Bubble Tax disproportionately burdens small, family-owned cider producers like Hardball Beverage. It restricts their ability to innovate with new flavors, increases costs dramatically, and forces them to compete with larger beverage companies under unfavorable pricing conditions.
4. Legislation to Modernize Taxation:
The Bubble Tax Modernization Act (H.R. 7029) seeks to align cider taxation with competitive beverage categories, reducing the tax burden and allowing producers to experiment with flavors without financial penalties. Introduced by Senator Schumer, the bill aims to foster growth in the cider industry and agriculture.
5. Support Needed to Pass the Bill:
Grassroots support is essential to move the bill forward. Advocates can easily contact their local representatives using a prewritten template provided by the American Cider Association. Increased awareness and action are critical to overcoming resistance from larger beverage industry lobbyists.
How to Support the Bubble Tax Modernization Act:
1. Visit the Advocacy Link:
Use the link shared by the American Cider Association or your local cidery to access the prewritten email template.
2. Enter Your Zip Code:
The platform will automatically identify your local representative.
3. Send the Email:
Review the prewritten message, make edits if desired, and hit “Submit.” The process takes less than a minute.
4. Spread the Word:
Share the link and information with friends, family, and fellow cider enthusiasts to generate broader support.
5. Follow Up:
Stay informed about the bill’s progress and continue advocating for its passage by engaging with updates from cideries or industry organizations.
Together, we can level the playing field for small cider producers and support local agriculture while enjoying more diverse, delicious ciders.