OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-5119

AN ACT AUTHORIZING THE SALE OF CERTAIN BRANDY BY FARM WINERIES.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Department of Revenue Services

GF - Potential Revenue Gain

Up to 5,000

Up to 20,000

Municipal Impact: None

Explanation

The bill allows any farm winery to sell on its premise brandy manufactured from fruit harvested on the premise but distilled off-site. To the extent that farm wineries sell such product, there will be a revenue gain to the state from the alcoholic beverages and sales taxes applied to such products.

For illustrative purposes, assuming that 50% of the state's wineries produce such brandy for sale on premise as a result of the bill, it is estimated that the alcoholic beverages and sales taxes generated would be up to $20,000 annually. This estimate assumes that the production of brandy at these wineries would be small relative to the production of wine.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.