VETO OVERRIDDEN ON BILL TO REDUCE ALCOHOL TAX ON KOMBUCHA

Senator Alfond’s bill to reduce excise tax on kombucha becomes law

AUGUSTA–The Senate unanimously voted 34 to 0 to override a veto of a bill aimed at reducing the alcohol excise tax on kombucha.

“This fix to the excise tax will support the kombucha industry and keep Maine’s momentum in the craft beverage industry,” said State Senate Democratic Leader Justin Alfond of Portland, the sponsor of the measure. “This is a good, common sense small business bill.”

Sen. Justin Alfond of Portland

Kombucha is a fermented drink, made from tea. Maine has one kombucha manufacturer, the Urban Farm Fermentory, located in Portland. It is a drink that has been around for at least a century, and has found new popularity in the past decade. The fermentation process for kombucha produces alcohol, because of this, the drink is technically subject to the alcohol excise tax.

Regulators currently classify kombucha as a wine, triggering an excise tax of $0.60/gallon. The amended bill, LD 819, would tax kombucha at $0.35/gallon, like beer and malt beverages.

LD 819, “Exempt Kombucha from Excise Tax Imposed on Alcoholic Beverages,” will take effect 90 after the Legislature adjourns.

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