[Legislator Name],
Ready-to-drink cocktails are in tremendous demand from consumers like me with a wide array of options from malt-based hard seltzers, wine-based flavored spritzers or canned/pre-mixed cocktails.
While this variety has greatly increased consumer choice, consumers of spirits based RTDs products in West Virginia are being unfairly burdened by restricted market access and higher taxes.
Spirits-based RTDs are booming and sold in grocery and convenience stores in 30 other states, but in West Virginia, we're not allowed to purchase these products there even though they have the same alcohol content as beer and wine products already on the shelves. It's time to provide greater access to local West Virginia distilleries, increase consumer convenience and grow revenue for the state.
But that's not all! West Virginia spirits producers are forced to pay much higher taxes for a craft spirits-based RTD product even if the product has the exact same or similar alcohol-by-volume (ABV) as a malt-, sugar- or wine-based RTD. For example, at 5% ABV, the West Virginia tax rate on spirits-based RTDs is 19 times higher than the 5% ABV malt-based RTD tax rate.
This excessive tax burden is also a steep hurdle for any West Virginia small distiller that may want to enter this growing category. In fact, according to a survey of craft distillers, 62 percent of those not currently producing RTD products cited the higher tax rate as a barrier to entering the market.
Responsibly expanding market access and lowering taxes on spirit-based RTDs will increase consumer convenience and support West Virginia businesses. The increase in sales resulting from expanded market access of these popular products will also generate an additional $1.2 million to $2.2 million in revenue.
Please support SB 928 which will create a more level playing field for spirit-based RTDs by responsibly increasing market access and reducing the tax burden on these products in West Virginia.
[Name]
