WATERTOWN, S.D. (KSFY) – Distillery owners across South Dakota may have to adjust their prices starting next year because of the Craft Beverage Modernization Act.
Glacial Lakes Distillery in Watertown was started in 2015.
“Our mission is to make incredible spirits made from South Dakota grown agriculture products,” said Glacial Lakes Owner Phillip Klein.
Phillip Klein is the owner. His business has benefited greatly from the Craft Beverage Modernization Act that was passed in 2017.
“The current tax bill, it reduced our per proof gallon tax down to $2.70, and I immediately passed that down to the consumers,” Klein said.
The bill is set to expire at the end of this year, leaving small business owners like Klein, in a bine.
Klein has known about the possibility o this happening, but there isn’t much he can do to prepare.
“If the tax does start back to $13.50, I’ll have to increase my price back to the consumer,” said Klein.
Klein has big plans for the future, but there are times he’s concerned about the future if the taxes for his business go back up.
The Distilled Spirits Council of America said the majority of Senators are now supporting this Legislation, and it continues to build momentum in the House.