Legal Limits (was Re: [Sca-cooks] Mead & Wix)

[Jeff Gedney]

>    Brewers and vintners should very definitely research the regultions
>    personally.  Georgia includes in its definition of "Head of
>    Household"
>
>    3-6-3 (b) For purposes of this Code section, a single individual who
>    is not a dependent of another person for purposes of Georgia income
>    taxation shall be considered a head of a household.
>
>     I would enjoy having citations of Article, chapter and paragraph for
>    the federal regulations on either wine or malt beverages so that I
>    can compare the definitions and the deference stipulated to local
>    states in this matter.

Happy to oblige!
27 CFR titles 1, 19, 24, and 25 are the relevant chapters

27 CFR 24 Part 75 reads in part:

Sec. 24.75  Wine for personal or family use.

    (a) General. Any adult may, without payment of tax, produce wine for
personal or family use and not for sale.
    (b) Quantity. The aggregate amount of wine that may be produced
exempt from tax with respect to any household may not exceed:
    (1) 200 gallons per calendar year for a household in which two or
more adults reside, or
    (2) 100 gallons per calendar year if there is only one adult
residing in the household.

    (c) Definition of an adult. For the purposes of this section, an
adult is any individual who is 18 years of age or older. However, if the
locality in which the household is located has established by law a
greater minimum age at which wine may be sold to individuals, the term
``adult'' will mean an individual who has attained that age.

27 CFR 25 Part 205 reads in part:

(a) Any adult may produce beer, without payment of tax, for personal or
family use and not for sale. An adult is any individual who is 18 years of
age or older. If the locality in which the household is located requires a
greater minimum age for the sale of beer to individuals, the adult shall be
that age before commencing the production of beer. This exemption does not
authorize the production of beer for use contrary to state or local law.

(b) The production of beer per household, without payment of tax, for
personal or family use may not exceed:

(1) 200 gallons per calendar year if there are two or more adults residing
in the household, or (2) 100 gallons per calendar year if there is only one
adult residing in the household.


>    While Federal Code supercedes State in most
>    cases, it also defers to states in in many situations of definition
>    and application.

Agreed. But State law cannot loosen an federal restriction, as I have
said, so Georgia Law cannot be said to allow a single adult household to
produce more than 100 gallons.  Even if no State rules apply, the Federal
rules would still apply to any amount in excess of 100 gallons.

Also note, these are EXEMPTIONS form tax, based on quantity. If a single
adult household produces 101 gallons of wine, it loses the entire
exemption and is liable for taxes owing on every drop of that 101 galons.
Just a word to the wise. ( call your local BATF office, and ask, If you
like, But thems the rules )

>    I assure you that the law in Georgia, at least as of 12/1/01, is
>    "real".

I don't doubt it, but it is not uncommon for state rules to "echo" federal
rules.  as the amount of 200 gallons is exactly the same as the maximum
under federal law, I stroingly suspect that this maximum is just a
restatement of the federal restriction. the 50 gallons Malt bevverage
though, is another matter, and is definitely an additional restriction,
and still fits with my statement that States cannot loosen or change
Federal law, only amplify, specifically redefine, or further restrict it.

This is a very OLD legal concept.


>    Different States have different options available for preparing and
>    selling fermented beverages.  They are all rather involved in
>    Georgia, and involve lots of different tax and licencing fees and
>    applications.

Not surprised. That is the usual course of such things in state
legislatures. Connecticut also has a sh*tload of similar laws and
restrictions and it's own taxes and tax administration on alcohol that
also have to be followed, in addition to the Federal Excise taxes and laws
we are talking about.


Brandu