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Federal and Minnesota state excise taxes and license fees

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  • Federal and Minnesota state excise taxes and license fees

    I am trying to wrap my head around the really fun stuff, licensing fees and excise taxes at the state and federal level.

    Hoping some of my brethren located in MN can help me out....

    For the sake of this example, let's assume I am brewing and selling 1,000 bbl per year all through a taproom in Minneapolis, MN.

    My understanding of the associated licensing fees and excise taxes is as follows:

    Licensing Fees
    • Federal TTB Brewer’s Notice: $1,000 Surety Bond

    • Minnesota state license for “Manufacturers & Wholesalers of beer of more than 3.2% ABW”: $1,000 Surety Bond

    • Minnesota Annual License fee for “Brewers manufacturing less than 2,000 barrels of malt liquor per year”: $150 fee per year

    • Brewer Taproom License (issued by the City of Minneapolis, not the State of Minnesota): cost unknown???

    Excise Taxes
    • Federal Excise Tax is $3.50 per bbl on the first 60,000 barrels for domestic brewers producing less than 2 million barrels annually, effective January 1, 2018: thus $3.50 per bbl * 1,000 bbl = $3,500

    • Minnesota Excise Tax: Brewers who produce less than 250,000 barrels annually are exempt from any Minnesota state excise tax (normally it is $4.60 per barrel but there is an equal offsetting tax credit for small brewers less than 250,000 barrels annually): thus $0

    Do I have this correct?

    Is there anything else I am missing?

    Thank you in advance for any insight you can provide. Very much appreciated.