CT state tax reduction on beer that will take effect in 2023

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BLOOMFIELD, Conn. (WTNH) – The craft brewery industry in Connecticut has grown sharply in
recent years. With an eye on continuing that momentum, Gov. Lamont is reducing taxes on beer.

The newly enacted state budget that was signed into law last month will reduce taxes on beer by 16.7%.

A report released by the National Beer Wholesalers Association and the Beer Institute found that beer brewed in CT yields $2.9 billion in economic output for the state and supports 17,892 jobs.

Prior to 2012, there were only a handful of breweries in the state. There are currently more than 120 operational breweries in Connecticut, with more in the planning stage, as part of the effort to make Connecticut a more business-friendly state.

“We worked very closely with all the breweries when it came to how we consolidate the licensing,” Gov. Lamont said. “Consolidate how you can sell within each other without sales tax. Reduce the excise tax, not a lot, but a little just to make us more competitive with other breweries and other beer around the region.”

“We’re [going to] see it trickle down to the employee as well as the consumer,” CT Brewers Guild Executive Director Phil Pappas said. “With breweries being able to save some dollars, reinvest that money into some production, add some things to their tap room. Really get back to the way and the growth rate of where we were back in 2019 before all this happened.”

The tax reduction is scheduled to take effect on July 1, 2023.

The changes are as follows:

  • Barrel (31 gallons): Current $7.20/New $6
  • ½ Barrel: Current $3.60/New $3
  • ¼ Barrel: Current $1.80/New $1.50
  • Wine Gallon: Current $0.24/New $0.20

The state anticipates a $2 million revenue loss from the tax decrease.

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