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12/29/2021

Tax Tip: Alcohol 2.0 With a Compliance Chaser

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Bloomberg Tax, December 29, 2021
Earlier this year, our Insights and Commentary team asked what tax practitioners needed to know—from tax tips to topics to watch out for—to start the new year off right. This week, we’re publishing some of the best submissions.
This tip was submitted by Jeff Carroll of Avalara.
For anyone not paying attention over the past year, beverage alcohol has become the most dynamic and interesting sector to track—a classic example of technology enabling shifts in consumer preference during a historic era, enabling transformative business growth, with compliance trailing close behind. Here’s a snapshot.


Marketplaces and delivery apps (i.e. Drizly, Instacart, DoorDash) are now pervasive. Home delivery of alcohol is here to stay. Consumers expect more options, faster, paving the way for more third-party providers—cue acquisitions by Uber et al. Look for more explosive growth in 2022, and moves by alcohol agencies to either regulate these entities, or take a lighter touch, focusing solely on priorities like preventing underage delivery.


Cocktails-to-go laws passed overnight in many regions during COVID to help restaurants and bars stay afloat. Now it’s decision time for states—sunset or let ‘em ride? Sixteen states and the District of Columbia have made cocktails-to-go permanent; California and others are extending provisions; some, like New York, are sunsetting. States that recently expanded options for bars, breweries, distilleries, restaurants and wineries are unlikely to walk them back. 2022 will feature ramped-up compliance enforcement around age verification and delivery agents.
Stay tuned as innovation meets regulation.
This column does not necessarily reflect the opinion of The Bureau of National Affairs, Inc. or its owners.

Author InformationJeff Carroll is general manager for Avalara for Beverage Alcohol. Jeff regularly speaks about and advises customers on beverage alcohol compliance issues, particularly in the areas of direct shipping and sales tax.

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12/2/2021

Virginia Spirits Association Partners with Spirits United Grassroots Platform in Support of Spirits Industry

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NEWS RELEASE
 
For Immediate Release:                                                         Contact: Colleen Sague
December 2, 2021                                    202-682-8801 
                           
Virginia Spirits Association Partners with Spirits United Grassroots Platform
 in Support of Spirits Industry
  
WASHINGTON – The Distilled Spirits Council of the United States (DISCUS) today announced the Virginia Spirits Association is joining Spirits United as a partner member to strengthen the spirits industry through advocacy.
 
“The Virginia Spirits Association will be another critically important state partner for Spirits United as we work to secure cocktails to-go permanency and grow the spirits market in Virginia,” said Chris Swonger, president & CEO of DISCUS and Responsibility.org. “Currently, the distilled spirits industry provides more than 15,700 jobs and $1.4 billion in gross domestic product in Virginia. Together, we will use the Spirits United platform to ensure lawmakers hear our collective voices on legislative issues that matter most to Virginia distillers and industry stakeholders to ensure the continued growth of our sector.”  
 
The Virginia Spirits Association is a nonprofit trade association focused on promoting its member companies who are a mix of small and large businesses who advocate for the responsible use of alcohol, sound state policies, and who generate revenue that benefits all Virginians.
 
“We look forward to teaming with Spirits United and DISCUS on policies that promote a fair and equitable marketplace and serve to modernize our industry here in Virginia.
,” said Don Tierney, Executive Director of Virginia Spirits Association. “Virginia Spirits Association’s member companies supply over 96% of the distilled spirits sold in the Commonwealth of Virginia.  As one of 17 states where the state government manages the sale of distilled spirits at the wholesale and/or retail level—ABC stores are the only retail outlets in Virginia where customers may purchase distilled spirits.  Our member companies and their brands were associated with $445 million in fiscal year 2020 General Fund ABC disbursements.”
 
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The Virginia Spirits Association promotes the responsible consumption of spirits by adults of legal age and advocates for the prevention of underage use.
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