OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-5928

AN ACT ESTABLISHING A MANUFACTURER PERMIT FOR FARM BREWERIES.

AMENDMENT

LCO No.: 5934

File Copy No.: 68

House Calendar No.: 80


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

FY 20

Revenue Serv., Dept.

GF - Potential Revenue Gain

Minimal

Minimal

Minimal

Consumer Protection, Dept.

GF - Potential Revenue Loss

None

None

Minimal

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment results in (1) a potential revenue loss to the Department of Consumer Protection, from increasing the limit on gallons of beer a farm brewery may produce and (2) a potential minimal revenue gain to in sales and alcoholic beverages taxes due to increasing the production limit as well as to raising the limit on farmers' market purchases of farm brewery beer.

There is a potential minimal revenue loss due to increasing the limit of gallons a farm brewery may produce from 50,000 to 75,000.  In the absence of the amendment, a brewery with production in the stated range is required to hold a beer manufacturer permit, which costs $1,100, versus a $300 farm brewery permit.  Therefore, the amount of potential revenue loss under the amendment is $800 for each brewery (if any) with production between 50,000 to 75,000 gallons that otherwise meets the criteria for a farm brewery permit.     

To the extent that farm brewery permittees would (1) increase production above 50,000 due to the amendment but (2) would not otherwise apply or qualify for the beer manufacturing permit, there could be a minimal revenue gain to sales and alcoholic beverages taxes.

The amendment also results in a potential minimal revenue gain in sales and alcoholic beverages taxes by raising the limit on farmers' market purchases of farm brewery beer from five to seven liters per customer.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.