Originally Posted by cruelkix
I've read this thread a few times now. Congrats and good luck! That is an awesome 1 BBL system.
Do you pay the $1000 federal charge every year or is it a one time hit and then you just pay taxes on everything yu make? Same with State. One time hit or is it a yearly expense? (I know its $300 in Colorado).
Again, Good luck and happy brewing!
The $1000 brewers bond is a one time hit (that's the minimum bond amount they accept). The bond has to be able to cover the federal taxes for a tax period (either bi-weekly or quarterly), so if I expanded and was approaching that number I would have to increase the bond amount. With my current setup, even if I ramped up production and was somehow able to make 10 barrels a month (extremely unlikely), I would still only need $210 worth of bond coverage and that's if I was paying quarterly. The bond needs to be renewed every four years. If I ever fold up shop, I should get my bond money back.
The fee for a New Hampshire Beverage Manufacturer's License is $100 a month, paid yearly. It would be tough for a 5 gallon brewer to keep his head above water, and I suspect that might have something to do with the fee.
The state tax is currently at 30 cents per gallon, due on the 10th of the month. Federal tax is $7 per barrel (around 23 cents per gallon).