Reintroduced Bill Would Change Alcohol Taxes on Kombucha

U.S. Sen. Ron Wyden (D-Ore.) and Rep. Earl Blumenauer (D-Ore.) have reintroduced legislation that would “ensure that kombucha beverages are exempt from excise taxes and regulations intended specifically for beer and other alcoholic beverages,” according to a press release. The KOMBUCHA Act would increase the alcohol-by-volume level at which alcohol taxes would be applied to kombucha, “a nonintoxicating beverage made from a combination of tea, water, and a symbiotic culture of bacteria and yeast,” to 1.25% rather than the existing standard of 0.5%.

“This amount of alcohol in kombucha is usually less than 0.5 percent alcohol, but because of the natural process of fermentation, the alcohol content may occasionally increase slightly, especially during transport or handling by third parties,” the press release states. “Today, under the Internal Revenue Code, beverages with more than 0.5 percent alcohol-by-volume are subject to excise taxes intended for beer. But the reality is, consumers do not buy and drink kombucha because of its insignificant alcohol content. For example, a person would have to consume between five and 10 bottles of kombucha to equal the alcohol in just one beer.”