Happy New Year From The TTB! No More Brewer's Bond Requirements For Small Brewing Operations
Widely regarded as a nuisance which was one more straw on the back of weary brewing entrepreneurs, the annual Brewer's Bond requirements for breweries, brewpubs, and other brewing operations went the way of the dodo in 2017. Per the TTB's website dated December 30th, 2016,
"As of January, 1 2017, if you are the proprietor of a brewery, distilled spirits plant, or winery not owning more than $50,000 in excise taxes in the previous year, and you expect to not owe more than $50,000 in excise taxes in the current year on beer, distilled spirits, or wine, you may be no longer required to hold a brewers bond."
...but wait! It get's even better for the nano-breweries and micro-breweries...
"In addition, if you owed not more than $1,000 in excise taxes in the previous year and expect to owe not more than $1,000 in the current year, you will be eligible to file your excise taxes annually, rather than semi-monthly or quarterly."
<queue the Halleluiah chorus>
Hurray! While it may not seem like a big deal, any time the government decides to cut fees and get/or rid of red tape it's a win for the little guy. While the majority of smaller brewers in operation carried the minimal bond amount required by the TTB ($1000 minimum), the costs only amounted to $100 per year to have a bond underwriting agency handle the bond on their behalf. While $100 won't break the bank, the bigger benefit will likely be the time savings provided to the average small brewery owner - an hour of time not wasted on red tape is an hour spent growing their brewery. Furthermore, not having to file excise tax reports on a bi-monthly or quarterly basis will likely be a huge time saver over the long term.
Hats off to the TTB!