HB 2726 Summary

• Expands the definition of "cooler beverage" to include spirits-based beverages containing distilled spirits with less than 7% alcohol by volume and added natural or artificial blending materials, in addition to existing wine-based and beer-based coolers.

• Establishes a reduced tax rate of $0.35 per wine gallon for qualified small brewers on both beer other than draft beer and draft beer, compared to the standard rates of $0.93 and $0.54 per wine gallon respectively.

• Defines "qualified small brewer" as a brewer producing 70,000 barrels or less annually, holding an approved brewer's notice from the Alcohol and Tobacco Tax and Trade Bureau, and producing beer within the United States.

• Tax rates for qualified small brewers take effect January 1, 2021, while the overall act takes effect July 1, 2112.