Michigan Gov. Gretchen Whitmer signed a bipartisan bill on Tuesday morning aimed at helping cut costs for Michigan distilleries and also support state farmers.
House Bill 4842, which was sponsored by Rep. Pat Outman, a Republican from Six Lakes, gives tax breaks to Michigan distilleries using Michigan ingredients, increases the number of bottles distilleries can produce and also helps save customers and distilleries money.
Under the bill, distilleries that use 40% of Michigan agricultural ingredients in the base of the spirit will have the markup reduced from 65% to 32.5%. Under the previous law, a distiller selling products must first stell them to the state, which is the wholesaler, and then the state applies a 65% markup to each bottle.
"Small businesses are the backbone of our economy and today I am proud to sign bipartisan legislation that supports an iconic and growing Michigan industry – craft distilleries," Whitmer said in a statement.
The plan with the bill is to allow smaller distilleries to get products to the market at more competitive prices.
“The signing of this bill today by Governor Whitmer is the single largest help for craft distillers since 2007 when Grand Traverse Distillery started producing spirits,” Grand Traverse Distillery Owner Kent Rabish, added in a statement. “We have always use local grain and this is going to help the bottom line tremendously. We were planning on a price increase with our vodka line since we have never increased the price and with the cost-of-living adjustments we just couldn’t afford to sell it any longer at $30 a bottle. This bill helps us maintain the cost for consumers.”
“This new law will benefit Michigan by spurring the growth of our craft distillery industry and the state’s grain industry,” said Rep. Pat Outman, R – Six Lakes. “Expanding the law to include small distilleries is a win for the state economy, and I appreciate Governor Whitmer’s partnership on this important legislation,” Outman said.
