KOMBUCHA

Bill: 117-s-892
Sponsor: full_name: Sen. Wyden, Ron [D-OR]
Introduced: 2021-03-23
Policy area: Taxation
Subjects: Alcoholic beverages

Food industry and services

Sales and excise taxes
Latest action: action_date: 2021-03-23
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-03-23
action_desc: Introduced in Senate
text: <p><strong>Keeping Our Manufacturers from Being Unfairly taxed while Championing Health Act or KOMBUCHA</strong></p> <p>This bill modifies the definition of <em>brewer</em> for purposes of the alcohol excise tax to exempt kombucha from such tax.</p>

tv_txt: II 117th CONGRESS 1st Session S. 892 IN THE SENATE OF THE UNITED STATES March 23, 2021 Mr. Wyden introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to ensure that kombucha is exempt from any excise taxes and regulations imposed on alcoholic beverages.

1. Short title This Act may be cited as the Keeping Our Manufacturers from Being Unfairly taxed while Championing Health Act or KOMBUCHA . 2. Tax-free production of kombucha (a) Exception from definition of brewer Subsection (d) of section 5052 of the Internal Revenue Code of 1986 is amended to read as follows: (d) Brewer (1) In general For purposes of this chapter, the term brewer means any person who brews beer or produces beer for sale. (2) Exception The term brewer shall not include any person who— (A) produces only beer exempt from tax under subsection (e) of section 5053, or (B) produces only kombucha exempt from tax under subsection (i) of such section. . (b) Exemption from tax Section 5053 of the Internal Revenue Code of 1986 is amended— (1) by redesignating subsection (i) as subsection (j), and (2) by inserting after subsection (h) the following new subsection: (i) Production of kombucha (1) In general Subject to regulation prescribed by the Secretary, any person may, without payment of tax, produce kombucha for consumption or sale. (2) Definition For purposes of this chapter, the term kombucha means a beverage which— (A) is fermented solely by a symbiotic culture of bacteria and yeast, (B) contains not more than 1.25 percent of alcohol by volume, (C) is sold or offered for sale as kombucha, and (D) is derived from— (i) sugar, malt or malt substitute, tea, or coffee, and (ii) not more than 20 percent other wholesome ingredients. . (c) Effective date The amendments made by this section shall apply to calendar quarters beginning after the date of enactment of this Act.