Tax on Malt Grains

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Schnitzengiggle

Schnitzengiggle

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My LHBS taxes me on my grain and DME purchases, I thought grain and sugar were food items.

Is it legal to charge sales on tax grain and sugar that are produced for brewing purposes?

Isn't it still considered food?

I was under the impression that ther was no sales tax on foods.
 
Here in AZ there is no sales tax on food, therefore, how is it justifiable to tax sugar and grain? If I go to the grocery or health food store and buy say oats or millet I don't pay tax, why does my LHBS tax me?

No entiendo?
 
I didn't get charged tax on my recent purchase of a wyeast smack pack and a vial of white labs yeast, NY state.
 
enderwig said:
It's called an employee bonus!! Or an owner that doesn't know any better, but I find that hard to believe.
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That's what I was thinking, I don't wanna get the dude in trouble, but I don't wanna pay more for my ingredients either, he is the only brewstore here in town, and unfortunately if I were to buy grain online and have it shipped it is usually a few dollars more than purchasing it from him and paying the 8% sales tax.
 
You get charged an extra 3% tax on soft drinks in Chicago... legal, yes... right? No...

Prolly depends on where you are.
 
your state laws may exclude those items since they are going to be brewed into alcohol, which is ALWAYS taxed.

be glad they aren't charging us a homebrewing tax and requiring a license.
 
Clayton said:
why not ask him?
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I plan on it next time I'm in, last time I made a purchase he was trying to jip me out of my AHA discount which they have given to me before.

malkore said:
your state laws may exclude those items since they are going to be brewed into alcohol, which is ALWAYS taxed.

be glad they aren't charging us a homebrewing tax and requiring a license.
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Very good and valid point. Thanks for setting me straight, I just assume that since there isn't sales tax on food, then what the hell is he doing, however, you are correct if he has to pay tax on it I don't mind paying it either. I'll be sure to ask him next time I'm in.
 
I would be willing to bet that there is tax because of the nature of his business. I would also bet that if you were to buy brewing grains from a store other than a LBHS there would be tax. In Ohio you don't pay tax on food, but you do on soda. He must be workin fo da man!!!
 
No tax on it in TX.

Brewmasters warehouse or Austion Homebrew ought to take care of you if he won't :mug:
 
Since alcohol is not exempt I would guess that those items used in the production of alcohol would not be exempt. If you bought those items in a grocery store they would have no way to charge you tax on them since they would assume you are making some breakfast cereal or bread. Buy it at the LHBS and they get you. Call the number 602-255-2060 Arizona Dept Rev.
 
Ohio does not or is not supposed to tax grain and sugar. The owner of the LHBS always make it a point to tell you he isn't charging tax on certain items......good dude.
 
buckeyebrewer said:
Ohio does not or is not supposed to tax grain and sugar. The owner of the LHBS always make it a point to tell you he isn't charging tax on certain items......good dude.
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I guess I've never looked that close at my reciept.

I assume you're talking about the one in Grandview, that's the only one I'll support because they are actually helpful, not snotty. He is a good dude, I was just in there today getting my yeast and I noticed when I got ready to pitch one of my starters one of the 2 yeast viles was WAY out of date. Called him and he said bring it back, no questions asked.
 
The state of Wisconsin closed that loop hole in the late 80s/ early 90s. Before that grain was un-taxed but now everything associated with homebrewing is taxed here.
 
my local LHBS does not tax my grain or extract purchases but they taxed my liquid yeast..:confused: They are just a small mom and pop operation so I chalk more up to just not knowing. That does give me one more reason to buy online through AHS. No sales tax
 
Here in AZ there is no sales tax on food,
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According to your states tax publication some cities in Arizona do charge tax for food.
Must be a local option.

Cheers,
ClaudiusB
 
The grain and DME is considered food and we don't tax it here in Texas. Prepared food has tax. For example there would be tax on a fried chicken but not on a raw chicken. It kind of gets into a sticky wicket though. If you buy oak from Home Depot it would be taxed but oak chips I don't tax.

Forrest
 
Schnitzengiggle said:
That's what I was thinking, I don't wanna get the dude in trouble, but I don't wanna pay more for my ingredients either, he is the only brewstore here in town, and unfortunately if I were to buy grain online and have it shipped it is usually a few dollars more than purchasing it from him and paying the 8% sales tax.
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not sure what the concensus is on here, but I have great luck with morebeer.com. They have free shipping, wouldn't take long to arizona there plus no tax for you i think

Edit: I addition though, My LHBS doesn't charge tax, just exorbitant prices for anything. Sixteen dollar 2oz pellet hops anyone??:confused:
 
What about a city sales tax? We don't have state sales tax up here but we do have a city sales tax.
 
To summarize:

Every state IS different, and some localities within states are different.

Check with your state tax department if you have any questions.
 
bhatchable said:
not sure what the concensus is on here, but I have great luck with morebeer.com. They have free shipping, wouldn't take long to arizona there plus no tax for you i think

Edit: I addition though, My LHBS doesn't charge tax, just exorbitant prices for anything. Sixteen dollar 2oz pellet hops anyone??:confused:
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No free shipping pn 55 lb bag of grainm this is where it becomes slightly cheaper to buy from my LHBS.
 
jimba009 said:
The LHBS in grandview is nice, helpful staff (most anyway) and they have a smokin hot red head making pizza!
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Hell yeah!! Too bad she's not working everytime I go in there, of course if she was I'd be eating way too much pizza!!
 
MikeinAK said:
What about a city sales tax? We don't have state sales tax up here but we do have a city sales tax.
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Amateurs.


We've got state sales tax, county sales tax, and then city sales tax tacked on top of the two. And almost nothing is exempt.


11% baby.
 
Synovia said:
Amateurs.

We've got state sales tax, county sales tax, and then city sales tax tacked on top of the two. And almost nothing is exempt.

11% baby.
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Cig tax, gas tax, soda tax, fast food tax (downtown) and don't forget the upcoming OLYMPIC TAX ! Oh yeah - just had a good sized alcohol tax levied across the state of Illinois too. A 750ml just jumped $4 overnight. :drunk:

-OCD
 
Schnitzengiggle said:
My LHBS taxes me on my grain and DME purchases, I thought grain and sugar were food items.

Is it legal to charge sales on tax grain and sugar that are produced for brewing purposes?

Isn't it still considered food?

I was under the impression that ther was no sales tax on foods.
Click to expand...

Is it possible they don't consider Beer or beer ingredients as a necessary or food, for the alcohol in beer causes health issues. I see no reason to waive taxes on such a product. Just my opinion.
 
samc said:
Since alcohol is not exempt I would guess that those items used in the production of alcohol would not be exempt. If you bought those items in a grocery store they would have no way to charge you tax on them since they would assume you are making some breakfast cereal or bread. Buy it at the LHBS and they get you. Call the number 602-255-2060 Arizona Dept Rev.
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Does a supermarket tax consumers on their purchases of corn because it could be made into motor vehicle fuel?

I question how one can be taxed on the potential of various ingredients. Malt is used in a lot of things, and brewing beer is only one of the potential uses. In the form that it is purchased, it is a foodstuff. Therefore, if similar foodstuffs (like flour or sugar) are not taxed in your state, malt should likewise not be taxed.

Of course, my opinion does not a law make. But for governments to tax based on "potential" is farking ridiculous.
 
We have high/low sales tax here in the Fiefdom of Duke Daley (AKA The Great State of Illinois). I only pay low tax on homebrew ingredients at what passes for our LHBS. Also low tax on coffee, but NOT on soda pop; I frankly don't understand that, but I'm not complaining.

I would hate to bring it up as an issue with government. The way they're looking around trying to scrounge revenue from ANY source these days, the previous post about licenses for homebrewing and taxes on the ingredients scares me. If homebrewing gets popular enough, I'd say that's a good bet.
 

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