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Oregon lawmakers introduce bill targeting 'outrageous' kombucha tax

Oregon Senator Ron Wyden and Representative Earl Blumenauer re-introduced a bill looking to boost the kombucha industry by targeting the way the beverage is taxed.

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GT Dave backs The Kombucha Act: 'Legislators understand the logic behind updating the law'

GT Dave backs The Kombucha Act: ‘Legislators understand the logic behind updating the law’
Once the ABV of kombucha exceeds 0.5%, it’s classified as an alcoholic beverage. The KOMBUCHA Act would raise that threshold to 1.25% ABV, enabling brands to sell ‘authentic’ raw kombucha using traditional methods without becoming subject to federal alcohol excise taxes for what is basically a non-intoxicating beverage, argues kombucha market pioneer GT Dave, founder of GT’s Living Foods.
The
KOMBUCHA Act (‘Keeping Our Manufacturers from Being Unfairly taxed while Championing Health Act’ H.R. 2124 / S. 892), which would amend the internal revenue code to ensure kombucha is exempt from excise taxes and other regulations imposed on alcoholic beverages, has been

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'Today's outdated federal tax rules still treat some kombucha as beer...' KOMBUCHA Act to be reintroduced in Congress

The ABV threshold at which kombucha switches from a non-alcoholic beverage to what is effectively 'beer' for tax purposes is currently set at 0.5%. The KOMBUCHA Act, set to be reintroduced to Congress this session, provided the right tax vehicle comes along, would raise that threshold to 1.25% ABV.
Representative Earl Blumenauer (D-OR-3) and Senator Ron Wyden (who is now chair of the Senate Finance Committee), aim to reintroduce
“
The Congressman does plan to re-introduce the legislation this Congress, though exact timing is still to be determined,” said Rep. Blumenauer’s office, while Sen Wyden's office told us: "
He is planning to introduce the bill again."

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