The 640% CA excise tax increase did NOT pass!

I just spoke with Steve Gross at the Wine Institute, and the 640% excise tax increase did NOT pass. Legislature may look at it again in the summer, but all parties are apparently reconsidering how this move would impact one of the largest income-producing, job-producing, and tourism industries in the state.

There wasn’t much good news in that budget anywhere but that little nugget is. No more pressure needed on the wineries in the current economic climate.

It is a small but delicious victory.

As a winery partner, I certainly get tired of being constantly bashed by the Three-Tier lobbyists for my evil penetration of interstate markets and my insidious corruption of America’s youth. And while we all have our paperwork and state fee nightmares, this legislation would have cost our small winery $7,000 a year. Permanently. Over the next 10 years, we would have paid the state of CA an EXTRA $70,000 for the privilege of producing 25 100-case lots a year. Goodbye, tasting room employees.

Ironically, this is the first year that the IRS is offering a Domestic Production Activities Deduction for goods produced and sold entirely in the USofA. I think our deduction, which is 3% of net income limited to 50% of W-2s (and apparently 1099s as well) would have been about $20.56.

Mary - Great to hear this…I guess signing petitions does really work.

Good for you guys!

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Congratulations, Mary, that was some scary stuff.