Craft Distillery Laws in Indiana

[Archaic_Entity]

Mods: I wasn't sure whether to post this here or in Break Room, but since it deals with laws and what I imagine is local politics I figured to post it here. Feel free to move it if necessary.

So, a friend and I are looking at the potentiality of starting a distillery in the nearish future, but I'm a bit muddled on the way this law reads. I think I got the gist of it, but I want to make sure I'm not missing something awesome.

http://www.in.gov/legislative/ic/2010/title7.1/ar3/ch27.pdf outlines the IC for the artisan's permit for distillers. The problem that I'm seeing is in section IC 7.1-3-27-5, where it states that you have to have hold a farm winery, brewery, or distiller's license already for a period of 3 years before applying for this permit. That seems a bit ridiculous that you would already have to have a permit for something to get started in something else.

Does anyone see any way around that, or did someone get the last laugh when the revamped this bill?

 

[rotortech]

I looked the IC over and my conclusion is that you need an attorney. The big obstacle will be the Federal permit, I believe. I can't explain the 3 year requirement. Good luck to you sir.

 

[rockhopper46038]

I have some insight into that law, but you aren't going to like it. Basically, the artisan's permit is/was a "carve out" to allow wineries/brewers the ability to continue to operate existing tasting rooms if they chose to start distilling product. It's more complex than that, for sure, but the State did not want a bunch of micro distilleries popping up and providing distilled spirits direct to the public. If your business plan does not rely upon you selling or offering samples to customers directly out of your distillery or a tasting room, you can obtain a standard distilling permit under IC 7.1-3-7. You will need to offer your wares for sale to a distributor for retail sale. Or open a winery/brewery and operate for 3 years first.

 

[Indy-Mike]

This was legislation pushed by the brewers and winery folks so they could expanded into micro distilling. The idea behind the 3 year thing was to have a track record with the state on paying excise taxes and to keep it a artisan industry.

 

[rockhopper46038]

^ Yep. And although it is a bit self-serving, I feel compelled to point out that before this law was enacted, brewers were completely restricted from being able to pursue distilling. Possessing a brewer's permit was a disqualifier from being able to obtain any type of distiller's permit. And while we didn't fight it, the 3 year exclusionary period wasn't something the Brewer's Guild pushed for.

 

[HeadlessRoland]

Government: we know what's best for you.

 

[Leadeye]

Government: We know how to make money off of you and protect our buddies who give us money as well.

 

[Archaic_Entity]

I have some insight into that law, but you aren't going to like it. Basically, the artisan's permit is/was a "carve out" to allow wineries/brewers the ability to continue to operate existing tasting rooms if they chose to start distilling product. It's more complex than that, for sure, but the State did not want a bunch of micro distilleries popping up and providing distilled spirits direct to the public. If your business plan does not rely upon you selling or offering samples to customers directly out of your distillery or a tasting room, you can obtain a standard distilling permit under IC 7.1-3-7. You will need to offer your wares for sale to a distributor for retail sale. Or open a winery/brewery and operate for 3 years first.

Actually, that's not too terrible. According to that, if I had a regular distiller's license for 3 years I should still be able to qualify--right? So that gives me three years to have a product that I'm able to sell to, say, 21st Amendment or something and afterwards I can open up for selling from my door?

Do you know how much a regular distiller's permit costs?

 

[Indy-Mike]

I believe it's $2,000 per year

 

[ATOMonkey]

Actually, that's not too terrible. According to that, if I had a regular distiller's license for 3 years I should still be able to qualify--right? So that gives me three years to have a product that I'm able to sell to, say, 21st Amendment or something and afterwards I can open up for selling from my door?

Do you know how much a regular distiller's permit costs?

You can't sell to a retailer. You need to sell to a distributor first, who will then sell it to 21st Amendment.

Hurray for more Indiana Blue Laws!

Now, if you have an Ag license, you can sell direct to the public.

Make sense?

 

[Archaic_Entity]

You can't sell to a retailer. You need to sell to a distributor first, who will then sell it to 21st Amendment.

Hurray for more Indiana Blue Laws!

Now, if you have an Ag license, you can sell direct to the public.

Make sense?

That makes sense. I don't know why I crossed up distributor and retailer in my mind. I know the difference.