The Michigan Senate this week approved legislation from state Senator John Proos to give a tax break to micro-distillers. Senate Bill 579 would reduce the state’s overall liquor markup by 2% over a period of four years, eventually reaching 63%, but only if in the previous year the total state sales of spirits increased by at least 2%. Proos tells us the markup would be reduced to 32.5%, half of the current rate, for those distillers who use at least 40% Michigan-distilled grain.
“This is a unique piece of legislation that not only helps those small distillers, but also helps out agriculture industries,” Proos said. “If 40% of the input product in the distilling industry utilizes Michigan-based agricultural products, we have the opportunity then for those individual corporations and individual businesses to actually benefit from a reduction in their overall markup price or their tax structure.”
The legislation would also establish an application process for such distillers to be considered a “qualified small distiller.” Proos said the incentives for using Michigan-grown grains would boost the state’s agriculture industry. His plan was approved by the Senate Thursday and now goes to the Michigan House.
