HB 1414 Summary

• Defines "hard cider" as an alcoholic beverage made from fermented apple or pear juice containing 0.5% to 10% alcohol by weight, including flavored, sparkling, or carbonated varieties.

• Creates a Class 2 domestic winery license for hard cider producers limited to 25,000 gallons annually, with an annual fee of $100, allowing on-premises and off-premises sales plus direct shipment to consumers.

• Class 2 domestic wineries must use licensed North Dakota wholesalers for any retail sales to other licensed premises and must file monthly sales reports to the tax commissioner.

• Extends existing winery provisions to allow licensed wineries producing no more than 50,000 gallons annually to sell hard cider directly to licensed retailers using their own equipment or through distributors.

• Establishes a tax rate of $0.50 per wine gallon ($0.132 per liter) on hard cider sold at wholesale, effective for taxable events after June 30, 2017.