LANSING (WWJ) – Michigan Gov. Gretchen Whitmer has signed a bill into law that will cut costs for the state’s burgeoning craft distillery industry and help Michigan grain farmers.
Whitmer on Tuesday signed House Bill 4842 into law, which greatly reduces the tax rate for Michigan distilleries that use Michigan-grown grains in their liquor.
Prior to this bill, distillers were taxed 65% by the state for each bottle of liquor. Now, that rate will be slashed all the way down to 32.5%.
The bill also increases the number of bottles distillers can produce, while saving them and their customers money.
It’s a move that Whitmer says will support the growing craft distillery industry, as well as grain farmers.
Michigan is home to more than 80 craft distillers, which is the 7th most of any state in the country. Jenelle Jagmin, executive director of the Michigan Craft Beverage Council, says this will be a jolt for both distillers and farmers.
“This new bill creates an incentive for craft distillers to use Michigan grown grain, providing additional markets for our farmers. It also provides opportunities for craft distillers using Michigan grain to invest back into their businesses and communities, creating even more good-paying jobs,” Jagmin said.
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Ken Rabish, the owner of Grand Traverse Distillery, calls it “the single largest help for craft distillers since 2007” when they began producing spirits.
“We have always used local grain and this is going to help the bottom line tremendously,” he said. “We were planning on a price increase with our vodka line since we have never increased the price and with the cost-of-living adjustments we just couldn’t afford to sell it any longer at $30 a bottle. This bill helps us maintain the cost for consumers.”
The full details of the bill can be read here.