KOMBUCHA

Key Points

• This bill would stop the federal government from taxing kombucha as an alcoholic drink if it contains less than 1.25 percent alcohol. Currently, these drinks can be subject to the same taxes and rules as beer or wine.
• Kombucha makers would no longer have to follow strict alcohol industry rules and paperwork for these low-alcohol drinks. This is meant to help small businesses grow without the burden of heavy regulations.
• To qualify for the tax break, the drink must be made from tea, coffee, or other plants and fermented with specific bacteria and yeast. It must also be clearly labeled and sold as kombucha.
• If passed, these changes would start in the first three-month period after the bill becomes law. This could lead to lower prices for shoppers or more variety in stores as production costs go down.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.