I am having a tough time finding a MN law. How much wine can be produced for personal use per year? I heard it was 600 gallons, but I cannot find any official document on the matter.
Thanks!
I just went to Homebrewers Association
That’s as good as legal advice on the internet gets. :mrgreen:
600 gallons is quite a bit; something like 3 growlers every day, plus an extra growler on Friday and Saturday. In PA the limit is 200 gallons. But that’s still 40 5-gallon batches in a year.
I think the production limits are generally there to close anti-selling loopholes.
I understand it as a federal limit of 100 gals per adult, up to two per household. Could be wrong, though.
I also understood the federal regulation to be 100 gallons of beer, wine, or mead (or any combination thereof) per adult per year, with a maximum limit of 200 gallons per household. But, I’ve never looked into it because I’ve never needed to.
The summary of federal law is correct (or close enough). There may or may not be a state limit. If not, it will default to the federal limit.
You get 100gal of wine, and 100gal of beer. 200gal of each if you have two adults in the household.
Anyone know the Federal Statute for this?
See this:
https://www.homebrewersassociation.org/ ... pic=8228.0It is Section 5053(e) of the Internal Revenue Code.
Pursuant to § 5053(e) any adult may, without payment of tax, produce beer for personal or family use and not for sale. The aggregate amount of beer exempt from tax under this subsection with respect to any household shall not exceed
(1) 200 gallons per calendar year if there are 2 or more adults in such household, or
(2) 100 gallons per calendar year if there is only 1 adult in such household.
For purposes of this subsection, the term “adult” means an individual who has attained 18 years of age, or the minimum age (if any) established by law applicable in the locality in which the household is situated at which beer may be sold to individuals, whichever is greater.
[quote=“ynotbrusum”]See this:
https://www.homebrewersassociation.org/ ... pic=8228.0It is Section 5053(e) of the Internal Revenue Code.
Pursuant to § 5053(e) any adult may, without payment of tax, produce beer for personal or family use and not for sale. The aggregate amount of beer exempt from tax under this subsection with respect to any household shall not exceed
(1) 200 gallons per calendar year if there are 2 or more adults in such household, or
(2) 100 gallons per calendar year if there is only 1 adult in such household.
For purposes of this subsection, the term “adult” means an individual who has attained 18 years of age, or the minimum age (if any) established by law applicable in the locality in which the household is situated at which beer may be sold to individuals, whichever is greater.[/quote]
But that limit is talking about a tax exemption, not an overall production limit; i.e. it does not say you may not not produce 201 gallons; it says that that 201st gallon produced may be taxed.
So read further down the page where they start to talk about excise taxes
Most of the Homebrew Assoc pages are giving me 404s right now, but I thought what they had posted about my state of PA, was more clearly written as an overall production limit.
Except that if you exceed the exemption, you are into an illegal production, so as it stated:
Under federal law, unlawful production can result in either a $1,000 fine or imprisonment for “not more than 1 year,” or both. 26 U.S.C. § 5674(a)
So it isn’t just the excise tax exemption at play here!
I’m no expert, but I think they can pursue any one or more remedies on this.
My thought on this thread is that if you have to ask your intention/s may be stepping the line of breaking the law in more ways than one.
No home producer will ever be queried for even producing 1,000 gallons collectively(beer/wine/mead/pickles/ fermented whatever). But if you in any way intend a scheme to distribute or happen to drop beer on certain “donating” friends regularly, coop brew, whatever is going on etc… in general you need to consider a professional brewing situation and pay your taxes, licenses etc… Don’t say you haven’t been warned crossing these lines is more than $1000 fine etc… Once the TTB has their sights on you…its over pal.
Be normal, make beer for home consumption and call it a day. Sure beer can be shared with friends and family. Sure many buddy’s/ clubs group up and coop batches in the name of experimentation/ big brewdays etc… But there is a time and place, if too many are actively trying to skirt laws in this realm it causes the everyday homebrewer grief down the line.
Many, many people have fought hard to make homebrewing legal and I hear all the stupid schemes, some presented to me at times over the years. You know what my response is? Start your own hobby with your own time and equipment and I will be happy to guide you to success.
I like cats.
Yup, I thought as much. Your a good man to actually admit to the fact and this thread will now help others understand the gravity of these acts.
TTB is going to be correct on the matter. Some one squealed on you bottom line.
It is hugely illegal to coop in this fashion. Because your intent is not pure (IE: this is no longer homebrewing for ones personal household.)
I have had literally 100’s of friends and family suggest: well I’ll just buy ingredients and you just make it along with heck I might even help etc… NOPE no way not even a drop. I work in the alcohol industry and I know exactly what the TTB will/ can do. Even if the agreement is for 1 drop/ gallon etc… You have now distributed alcohol without #1 a license, #2 paying your tax on said beverage.
Even if you get out of the small fines and fees your looking at this is a mark for life.
Find and pay for the best representation you can find and you might be able to prevent the black mark on your federal background check in the future. This may alter your ability to own/ possess firearms also in regard to NCIS check/s if this moves forward on you, I am not an attorney just best guesses here. Get the best lawyer possible. I have never had to look, but I suggest calling the MLBA( MN Licensed Beverage Assn.) I am sure they can refer you to liquor litigation lawyers that have represented actual licensees that ran afoul of the TTB in some way or form.
/I still like cats.
O M G.
As mentioned above I am only in the trade, I do not hold a retail license or production license personally at this time and will not risk even a slight confusion with the feds as indicated by my reluctance to bow/sway to these inquiries from friends and family. Why in the name of all that is good would you risk your current TTB status for a few goofballs that cant pay you full price for your wine? Heck give em 50-75% off if you want, but at the register on the other side of the tax room. If you are commercially producing you must understand what major steps it took/takes to receive and most importantly retain TTB/ State approval for this commercial venture. What you have daylighted today is no small/ laughing matter.
I am guessing they will be auditing your personal/ business taxes and commercial bonded production record in combo with purchase/sales receipts, I am just thinking out loud that there is more behind the curtain as I have consulted for many start ups in MN that seem to have more money than thought/ethics( such as one that COMMANDED me to alter the bonded record keeping, NONO donkey you do that stuff with your own hand ) and I have walked away from these individuals gladly. I hope you didn’t fudge your bonded transfers and COLAS as these other cheaters did/wanted to do. As then you risk FED prison time not just a couple buckos.
On the other hand I have had the pleasure of working for honest business/ winery owners that are making great strides for themselves and MN in general. This is more than unethical, you knew exactly what you were doing here especially as a licensee. If you were a shlubb off the street I would say you have some ignorance of the topic at hand, but this is inexcusable. As you also threaten our commercial winemaking industry that is just starting to get a foothold, and now your one of many that help increase the hardships/scrutiny start ups may experience in the future.
I wish no ills on anyone, but you need to get back on the “right” side of the tracks and start playing by the rules my man. Hopefully what you mentioned today was your only infraction and and a good lawyer can probably save your hide.
I do not see any rule where someone cannot own a winery that only sells wholesale (never to individuals), pay all of my necessary taxes, and still enjoy buying a kit of wine to make with friends back at their house.
Making a kit for somebody else when you are already licensed as a commercial producer, seems like a gray area and obviously a patently bad idea. The law says nothing about making wine/beer for someone else, you can’t do that even though it seems innocuous enough.
With what I am reading you might want to invoke your 5th amendment right…
Bottom line any juice, sugar, water anything other than your actual equipment that enters your bonded winery via invoice basically is under the control/ “ownership” if you will, of the FEDS until you can prove via accounting what happened to any drop of unfinished or finished wine and can actually show any/all physical inventories upon demand, such as now it seems.
Your going to need expert assistance in understanding these compliance procedures and/ or will have it explained to you real quick like from the sounds of things.
You have to prove legitimate need to invoice alcohol related goods in general through the wineries doors/invoices period. If you want to run a retail homebrew shop, it will have to be established under a different business entity/ invoicing etc… altogether, so there is no confusion as to what is going where.
This is just some stuff from a “peers” POV today and I am done with this thread as I am not being compensated to spell this stuff out for a business owner.
