Vermont Gov. Phil Scott (R-VT) signed a bill reducing the tax rate for spirits-based ready-to-drink (RTD) products and expanding outlets where they can be sold.
Spirits-based RTD products have been available only in 81 state-operated stores. Now, these products will be available in more than 1,000 additional retail outlets.
The law will also reduce the tax on spirits-based RTD products to $1.10/gallon (implied excise tax rate based on markup, taxes and fees currently assessed by the state) from $7.68/gallon. It will become effective on July 1.
Twenty-four states already have lower tax rates for lower-abv spirits-based products. In fact, last year bills to reduce the state excise tax on spirits-based RTDs passed in Michigan and Nebraska. At least 12 states have introduced bills so far this year to create a more level playing field for spirits-based RTDs in support of consumers and small businesses in their communities.
“States across the nation are looking at ways to create a more level playing field for spirits-based ready-to-drink products, and Vermont is now one of the leaders in that area. Treating products with the same or similar alcohol-by-volume fairly just makes sense, and this measure increases consumer convenience while supporting local businesses. We are grateful for Governor Scott’s action on this front,” said Jay Hibbard, SVP- State Government Relations, Distilled Spirits Council of the United States .