Clarksville NowOld Glory Distillery on hook for $14,060 fee from the FDA.
CLARKSVILLE, Tenn. (CLARKSVILLENOW) – Distilleries across the country that stepped up and began producing hand sanitizer in the face of a pandemic-induced shortage are now on the hook for a fee from the Food and Drug Administration of $14,060, including Clarksville’s Old Glory Distillery.
One facet of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) legislation was that it overhauled the process of getting FDA approval for manufacturing and selling over-the-counter, non-prescription products such as hand sanitizer.
However, by expediting the process of securing approval for what the FDA calls “Over-the-counter monograph drug,” distilleries like Old Glory are now footing the bill.
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Traverse City Whiskey Co. made hand sanitizer in 2020, one of many distilleries that jumped into action to help slow the spread of coronavirus.
Special to the Record-Eagle
Iron Fish Distillery was one of many distilleries that jumped into action in 2020 to help slow the spread of coronavirus by making hand sanitizer.
Special to the Record-Eagle
TRAVERSE CITY â The U.S. Food and Drug Administration on Tuesday notified distillers who made hand sanitizer in 2020 that they each owed a fee of $14,060. Late Thursday, the Department of Health & Human Services withdrew the scheduled fee.
âThese alarming and sudden payments will no longer be due on February 11, 2021,â a Thursday evening email from trade organization American Craft Spirits Association told distillers across the nation.
Permanent tax cut for distillers gets final approval 22nd December, 2020 by Nicola Carruthers
The US Congress has passed a bill to make the Craft Beverage Modernization and Tax Reform Act permanent, a move that will support “struggling craft distilleries in need of economic relief”.
The Craft Beverage Modernization and Tax Reform Act was made permanent just days before it was due to expire
On Sunday (20 December), the Craft Beverage Modernization and Tax Reform Act (CBMTRA) was included in the year-end funding legislation package to help businesses recover from the pandemic.
The decision to make it permanent came 12 months after the tax cut gained a one-year extension and was due to expire on 31 December 2020.
Craft distilleries bracing for huge tax hike in 2021
Craft distilleries brace for tax hike
Craft distilleries are bracing for a huge tax hike in the new year that businesses say will wreak havoc on the craft liquor industry.
WASHINGTON (FOX 5 DC) - Craft distilleries are bracing for a huge tax hike in the new year that businesses say will wreak havoc on the craft liquor industry.
If Congress doesn’t act, craft distilleries will see their federal excise tax increase by 400 percent.
Currently, the excise tax distilleries pay on their liquor is based on how much is produced. Smaller distilleries that produce less pay a lower rate than the huge companies making millions of dollars and selling worldwide.