Some barrel-aged beers can gain as much as two percentage points of alcohol by volume during this time period, far exceeding the half-percent ABV increase that the Board of Equalization agreed upon as the fortification limit before a beverage must be classified — and taxed — as a distilled spirit.
Altimari purchased a half-dozen used Heaven Hill bourbon barrels from Kentucky several years ago. He has released several barrel-aged stouts since, and now, to avoid paying the alcopop tax, Altimari slightly dilutes his barrel-aged beers with weaker ales — a common method among brewers leery of paying the tax.
North Coast Brewing Company’s Old Rasputin Russian Imperial Stout measures 9% ABV in conventional form, but a special bourbon barrel-aged version first produced several years ago has measured up to 11%. When the alcopop tax took effect almost 18 months ago, the Fort Bragg brewery made no objections.
“We just went ahead and paid the distilled spirit tax because we’re good citizens,” says Mark Ruedrich, North Coast’s president and brewmaster. “These beers aren’t a big enough part of our business to make it worth our time to complain.”