House Bill 638 Summary

• Authorizes holders of Class 1 manufacturer's permits (distillers/rectifiers) to obtain a distillery retailer's permit allowing on-premises consumption sales at the distillery, in addition to existing off-premises bottle sales.

• Permits distillery retailers selling for on-premises consumption to add other beverages (alcoholic or non-alcoholic) to their manufactured products, provided other alcoholic beverage components do not exceed 20% of the total volume.

• Establishes on-premises sales hours for distillery retailers to match those authorized for on-premises permittees in their city or county.

• Creates two privilege license tax tiers for Class 1 manufacturer's permits based on annual production volume: $4,500 for permittees producing 5,000 gallons or more annually, and $2,800 for those producing under 5,000 gallons.

• Authorizes the Department of Revenue to allow on-site pickup of distilled spirits at distillery retailers instead of warehouse shipment, and permits distillery retailers to hold spirits for onsite pickup.