AB 521

Under current law, a person is not required to hold a license or permit to make

wine or fermented malt beverages (beer) at his or her home, farm, or place of

residence if the wine or beer is to be consumed by the person or his or her family and

guests and if the person receives no compensation. Also under current law, a person

is not required to pay an occupational tax on wine or beer made at home solely for

consumption at home by the person's family and guests, without compensation.

This bill significantly modifies the standards for the production and use of

homemade wine and beer for which a license or permit is not required and for which

occupational taxes are not owed. Under the bill, "homemade" wine and beer is wine

and beer made by a person's own efforts and not for a commercial purpose, and is not

limited to wine or beer made in the person's home. Under the bill, no license or permit

is required for the making of homemade wine or beer, and the possession,

transportation, or storage of homemade wine or beer, if all of the following apply: 1)

the person who makes the wine or beer receives no compensation; 2) the wine or beer

is not sold or offered for sale; and 3) the total quantity of wine or beer made by the

person and any other person living in the same household does not exceed 100 gallons

or 200 gallons per calendar year, depending on how many persons of legal drinking

age live in the household. If wine or beer is made in compliance with these

requirements, this homemade wine or beer may also be used, without any license or

permit, for purposes of exhibition, demonstration, judging, tasting, or sampling or

as part of a contest or competition (collectively "home maker's event").

The bill also allows a person, including an alcohol beverage retailer or other

permit holder, to conduct, sponsor, or host, at a public or private place under the

control of the person, a home maker's event if the person does not sell, or acquire any

ownership interest in, the homemade wine or beer.

Under the bill, homemade wine or beer made in compliance with the

requirements identified as items 1 to 3 above is exempt from the occupational tax.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.