SB 205

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

manufacture 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.

Under this bill, a person is not required to hold a license or permit to

manufacture wine or beer at a business primarily engaged in selling supplies and

equipment for use by homebrewers or home winemakers, or to taste the wine or beer

at this business, if the wine or beer is not sold or offered for sale. A person is also not

required to hold a license or permit to manufacture wine or beer for educational

purposes, or to taste the wine or beer at the place of manufacture, if the wine or beer

is not sold or offered for sale. A person who manufactures wine or beer under these

circumstances is also not required to pay an occupational tax. The bill also specifies

that a person who manufactures wine or beer at his or her home, farm, or place of

residence for consumption by the person or his or her family and guests, and who

receives no compensation, is not required to pay an occupational tax on the wine or

beer regardless of where it is consumed.

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.