A new law in Michigan supports local brewers.
Brewers, warehouses, and brewpubs have the right to sell their products on-premises and from a distance, if they don't operate a retail business. Breweries that produce less than 1 million gallons annually must also obtain a brewer's permit, which allows the establishment of an on-site tasting room without a separate liquor license. The state excise tax on beer sold for on-premises consumption is only $0.60 per barrel, regardless of alcohol content or production level. The state excise tax on beer sold from a distance is only $0.25 per barrel, regardless of alcohol content or production level.
Senate Bill 773, sponsored by Sen. Mike Nofs of Battle Creek, eliminates a law that limited how much beer brewers could sell on-premises in their own taprooms. The previous limit was a maximum of 2,000 barrels per year or 1,000 barrels on average per year over two years. The new bill increases the on-premises limit to 15,000 barrels—or up to 1 million gallons annually—as long as breweries do not operate a retail store. It also allows them to ship up to 288 ounces of beer to consumers annually if they do not operate a tasting room.
Senate Bill 777, sponsored by Sen. Jim Stamas of Midland, allows beer brewed in a manufacturing facility and then sold to a distributor to be returned to that same manufacturing facility for off-premises consumption. The change makes it easier for brewers to conduct on-premises tastings. The previous law required breweries to operate their own separate on-site retail site. This change is particularly helpful for start-up and smaller breweries that do not necessarily have the funds required to purchase and operate a separate retail business such as a restaurant or pub.
The new laws are helping Michigan's craft beer industry grow rapidly. By 2016, the Michigan Brewers Guild reports that there were more than 100 breweries in the state brewing more than 40 different beers. The laws also bring new jobs and innovation to the economy. According to the Brewers Association, the total economic impact of craft beer-related business activity in Michigan is estimated at $53 million.
Since the passage of these laws, Michigan has welcomed several new breweries and wineries.
This is a great law for Michigan breweries that want to increase their market and grow their market area. These new laws are helping the Michigan craft beer industry grow rapidly.
Breweries that can sell more than 5,000 barrels in a calendar year must now provide medals to qualifying beers at each of their events the following year. In addition, all breweries that can offer 25+ beers on tap or bottled must provide medals for each one of those beers in the competition. The medals will be displayed at the brewery and are viewable by the public in the taproom.
If a brewpub produces or sells no more than 600 gallons per year (6,000 pints) it does not need a liquor license to operate a tasting room.
Several of these breweries have already begun construction on their new breweries in preparation for launch. More than a dozen other planned breweries are still awaiting permits and building permits. There are also ongoing plans to expand existing operations:
There are at least nine wineries in Michigan and many more are in the works.
Craft beer is changing lives and changing Michigan! Many Michiganders have been inspired by the explosion of interest in craft beer and want to get involved.
The Michigan Brewers Guild is working to educate people about the industry and promote its positive effects on our state. The Guild recognizes that craft beer is a growing industry that needs to be widely supported and supports legislation that supports local breweries.
American consumers have never experienced anything like it! The craft beer revolution is bringing new jobs, new jobs, and more jobs—to the Michigan economy!