There are many laws at both the federal and state level that
govern the production and distribution of distilled spirits. For
example, craft distillers must comply with licensing and permitting
requirements, trade practice laws, advertising restrictions, and,
depending on the jurisdiction, alcohol franchise law. One of the
most fundamental—and most complex—areas of law
governing distilled spirits is excise taxes.
An article authored by McDermott's Bethany K. Hatef in the Winter 2020 issue of
Artisan Spirit Magazine provides a high-level overview of
the federal alcohol excise tax system and some specific features
that apply to distilled spirits, and also explains the current
status of the Craft Beverage Modernization Act, the legislation
temporarily providing for reduced tax rates for certain amounts of
distilled spirits.
