House passes bill to do away with little-known tax on free wine sips at tastings
The House has voted 64-0 in favor of HB 489, to do away with a little-known tax on free sips of wine or other beverages handed out at free tastings. "Wineries did not know that use taxes applied to free tastings," Rep. Cliff Bayer, R-Boise, told the House. So they were surprised last August to receive a letter from the Idaho State Tax Commission, telling them go through their records going back three years, to see how much they'd given away in free product at wine-tastings, and pay sales and use tax on that amount.
The industry, the Tax Commission and state authorities met in recent months and determined that enforcing the little-known law would cost more than it would collect, and worked together on HB 489 to get rid of it. The bill applies to all beverages given out at free tastings, from winery tasting rooms to farmer's market free samples of apple cider. The bill now moves to a Senate committee.