Hard Cider Bill Fails In Committee

A bill designed to spur the production of hard cider has narrowly been turned down by the House tax committee.

The House Revenue and Taxation Committee on Thursday voted 8-8 on legislation that would have given preferred tax status to fermented or hard cider with an alcohol content up to 7 percent.

Without a majority vote, the bill died in committee.

A representative of Gallo Wineries, Roger Mobedian, urged the committee to allow production of hard cider to be taxed at the rate for beer. Under current laws, any product with an alcoholic content over 4 percent is taxed as wine.

Mobedian said the difference is about 50 cents per six-pack, and with the higher tax there wouldn’t be much of a market for hard cider.

He said his company sells fermented cider in 33 other states. There could be a market for 30,000 cases a year in Idaho, he said, which would mean an extra $2 million per year to Idaho apple growers.

But some committee members worried that people might buy alcohol-laced cider by mistake. Rep. Mark Stubbs, R-Twin Falls, said fermented cider is defined by federal law as wine, and Idaho’s tax laws should be consistent.