HB484 Alabama 2023 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2023

Title

Relating to brewpubs; to amend Section 28-4A-3, Code of Alabama 1975; to authorize the transfer of beer between brewpubs in certain circumstances and to provide further for determining taxes due on beer sales.

Summary

HB484 would allow brewpubs under common ownership to transfer beer between their own brewpubs and require measurement tanks to determine taxes on beer sales.

What This Bill Does

It lets beer be transferred directly between brewpubs owned by the same entity under certain conditions and treated as produced at the receiving brewpub for retail sale, with transfers limited to a combined 10,000 barrels per year per brewpub (and not permitted if related production exceeds that total). It requires beer to be moved into tax-determination tanks and measured with calibrated devices, with records kept to determine taxes due, and taxes collected when the beer is allocated for retail sale. It maintains existing brewpub requirements (on-site restaurant, active brewing, and limits on off-premises sales) and adds ownership and financing rules, including a 75% ownership threshold for same ownership and allowances for manufacturers up to 60,000 barrels per year to own a brewpub under specified restrictions.

Who It Affects

• Brewpub licensees and owners: gain authority to transfer beer between their own brewpubs under defined conditions and must follow new measurement, record-keeping, and tax rules.
• Beer manufacturers with annual production up to 60,000 barrels: may hold a financial interest in a brewpub under specific ownership restrictions (no direct manufacturer-to-brewpub transfers; must buy from wholesalers; no other retailer ownership).
• Licensed beer wholesalers and retailers: may receive beer from brewpubs for resale and are involved in the tax allocation process for transferred beer.
• Charitable organizations and events: may receive up to 31 gallons of brewpub beer for charitable events, with any remaining beer returned to the brewpub for disposal and taxes handled accordingly.
• State and local tax and regulatory agencies: will implement the new measurement, tank-timing, and tax calculation requirements and enforce related license and ownership rules.

Key Provisions

• Allows direct transfers of beer between brewpubs under common ownership, with transferred beer treated as if produced at the receiving brewpub for retail sale, subject to a 10,000-barrel-per-year limit per brewpub.
• Requires the transfer to go through tax-determination tanks and calibrated measurement devices, with accurate records to determine the tax due; taxes are charged when the beer is allocated for retail sale.
• Brewpubs must operate a restaurant on the licensed premises; beer on the premises must be brewed there to be sold as an alcoholic beverage on-site; other restrictions on sale continue (e.g., off-premises sale limits).
• The annual brewpub license fee remains $1,000.
• Same ownership is defined as at least 75% ownership or control; a manufacturer selling up to 60,000 barrels annually may own a brewpub under restrictions (no direct transfer from manufacturer to brewpub; purchases must be from wholesalers; no other retailer ownership).
• If the combined barrelage of related brewpubs exceeds 10,000 barrels, retail transfers of beer under this provision are not allowed.
• Beer produced on a brewpub premise may be sold to licensed wholesalers for resale to retailers; transfers between brewpubs and retail sales through designated wholesalers follow applicable state and federal law.
• Beer donations to charitable events up to 31 gallons are allowed, with remaining beer returned to the brewpub for disposal and taxed accordingly.
• Effective date: becomes law on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Brewpubs, transfer of beer between brewpubs authorized, method to measure volume of beer sales for tax purposes established