Vt. cidermakers toast new law

BURLINGTON, Vt. (WCAX) – Vermont hard cider producers and fans are toasting new rules that take effect in July. Up until now, Vermont has only regulated alcohol in three categories — beer, wine, and spirits. Now, hard cider is getting its own set of standards.

“While it’s produced like a wine, it’s consumed like a beer,” said Duncan Rollason with the Vermont Cider Company in Middlebury. He says the state has traditionally regulated cider like a wine, creating a disadvantage compared to its real competitor — beer. “The alcohol by volume of cider is typically in a similar range to beer, so to be able to sample it in the same size is important to get it to the consumer in that regard.”

Under a new law being implemented on July 1, that won’t be an issue. Cidermakers will be allowed to provide samples at events and festivals in the same 12 oz volume as brewers.

Taxes on ciders with less than 7% alcohol content will also be going down.

“Before, we were paying 55 cents per gallon. Now, it’s 26.5 cents,” said Ben Calvi, Vermont Cider Company’s COO, and also a board member of the Vermont Cider Association.

He says consumers won’t see a price drop but it’ll prevent them from going up. “Everything from the apples to the glass to the cans to the cardboard is more expensive every year. Having this tax break will help us limit costs we otherwise would have to pass to consumers.”

Eleanor Leger with Eden Ciders in Newport points out that the new tax rate is still more than the federal tax rate of 16 cents per gallon, but that savings are savings. “Right now, because of the freeze, every little bit helps us pay for extra fruit, and buying fruit from other places we didn’t think we would have to,” she said. “It’s a small investment they could make, but one that has a big impact on the cider industry here in our state.”

While some ciders will be taxed at a lower rate, Calvi says it’ll have a minimal impact on state tax revenue. He says there will only be a $140,000 loss.

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