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Moonshiners getting the OK from ‘revenooers’

November 25, 2007

There’s a microdistillery boom going on, with more and more homemade booze being produced across the United States.

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But these specialty liquor makers don’t have to run from revenooers a la Snuffy Smith.

The still owners are, in fact, thriving with the tax collector’s blessing. 

According to a story in today’s New York Times, "some of the latest and quirkiest entrants to the industry are in places like Iowa, Indiana, Illinois, Michigan and Mr. Fox’s barn."

Since Prohibition ended, states have regulated sale and distribution of alcohol, in conjunction with some federal requirements. A lot of places took stances that were barely looser than the bootleg era laws.

Now, reports the Times, "small steps have been taken toward loosening state regulation — moves that probably have as much to do with bringing in revenue as anything going on with consumer tastes."

"Distilled spirits are a bonanza from a tax standpoint," Michigan State professor and microdistilling expert Kris A. Berglund told the paper. "I guess somebody sat down and looked at the math and said, Holy cow! We’re cutting ourselves out of the action, not to mention tourism dollars."

The Tax Foundation keeps track of key state taxes, including alcohol. Click here for 2006 rates (the latest update) by state.

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Here in Texas, we’re quite proud of our burgeoning wine industry. But we’ve also got a few liquor producers, too.

Take, for example, Austin’s own Texacello, which makes quite tasty orange and lemon liqueurs along the lines of the classic Italian Limoncello.

Thanks to these beverage makers for their contributions to the gastronomic world as well as the state’s treasury.

Salud!

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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