OVHA Chat

This is how it reads, not how I interpreted it. It's pretty much Black and White. If the Organization has a permit to allow beer and wine. We don't have a problem. We're not selling.

Exceptions
Sec. 3. (a) The provisions of this title shall not prohibit the following:

(4) The manufacture of wine or beer that is not offered for sale and is used only for the following purposes:

(A) Personal or family use.

(B) Use in the residence of the person who manufactures the wine or beer.

(C) Use at organized affairs or exhibitions.

(D) Technical or sensory evaluations.

(E) Wine or beer educational seminars.

(F) Wine or beer competitions, including contests, tastings, or judgings.

(b) The transportation and the possession of alcoholic beverages described in subsection (a)(4) shall not be prohibited but shall be subject to the applicable provisions of this title.

IC 7.1-5-8-5

Taking alcoholic beverage on licensed premises; exceptions

Sec. 5. (a) This section does not apply to a person who, on or about a licensed premises, carries, conveys, or consumes beer or wine:

(1) described in IC 7.1-1-2-3(a)(4); and

(2) not sold or offered for sale.

The issue is how "sale" is defined. Even though we are donating the beer, the consumption is contingent upon the purchase of a ticket.
The current law fails to provide any exemption to the barring of sales, whether from the brewer or a non-profit organization that has received the beer as a donation from the brewer. What is needed is an exemption for non-profit organizations to allow sales of donated beer and wine during their charitable events.
Simple, right?................

We are not alone.

http://www.homebrewersassociation.org/f ... #msg115498

Dwayne_Delaney wrote:The issue is how "sale" is defined.

Sale is easy to define.. If I brew 5, 10 gallons of beer and sell it to you and the state gets no revenue from it. Basically Bootlegging, and I make money from the sale .. That's how Sale is defined by the State. We donate our homebrew to a charity or non-profit Org for a event and we get nothing for it, not even a Tax write off, that's not selling.

Of course we here in KY, need to be really careful of the fact that we have no state law regarding HomeBrew. KY defaults to the Federal Law and that is really wide open. If read correctly we're not allowed to take our 5gals. of brew across the river to IN. That falls under Interstate Commerce Law and I don't even want to research that document.

But as the old saying goes, "The squeaky wheel gets the oil".. If we just keep quiet and continue on as we are, we may never hear another word about it. No since burning bridges to Indy until we know where the fight may be or if there will be one..

The issue has never been that we are selling our homebrew; it is obvious to us and the excise folks that we are donating the beers. They are saying that the organizations are selling the homebrewed beer that we have donated by requiring a ticket be purchased before it can be consumed. Current law prohibit anyone from selling it, thus the need for an exemption for non-profits during these events.

Upon further research of the Indiana Law.

There is an exemption process that allows each organization to ask for a "One Time Exemption" on tax from donated beverages. They can only ask/apply for it once a year, and each Org. has to apply. I think since these events only happen once a year, then that is the way it needs to proceed.

Our first event next year is in June, and I would suggest that whoever is hosting the event get with the Excise Cabinet and apply.

I also found a loophole in the Sale of Homebrew that was interesting.. If we take our brews into say, Germania Mannerchor or Turoni's they can sell it. Because they have a
license to do so. We as individuals can't make a dime, but the club can. The Law doesn't say it has to come from a licensed distributor, just that the establishment is licensed to sell malted beverages.

Just, "Brew for Thought"..