Connecticut is planning to scale back its tax on beer in an effort to aid the state’s expanding craft brewery industry.
Speaking at Thomas Hooker Brewery in Bloomfield Wednesday, Gov. Ned Lamont announced that the biennial budget he signed into law last month will reduce state taxes on beer by 16.7%. The change will take effect in July 2023.
“Connecticut’s craft brewery industry has been booming in recent years, and it is evidenced by the growth of hundreds of new jobs for our state’s residents,” Lamont said. “We should be doing everything we can to support locally-owned small businesses, including craft breweries. This reduction in taxes is another way we can support them.”
According to the governor’s office, taxes on a barrel of beer — equivalent to 31 gallons — will fall from $7.20 to $6. Taxes on one half of a barrel will decline from $3.60 to $3, and the levy on a quarter of a barrel will drop from $1.80 to $1.50.
The state expects to lose about $2 million in revenue from the tax decrease.
A recent report from the National Beer Wholesalers Association and the Beer Institute found that Connecticut-based brewing generates $2.9 billion in economic output for the state and supports almost 18,000 jobs, ranging from agriculture to manufacturing to customer service.
