LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6593 NOTE PREPARED: Dec 11, 2020
BILL NUMBER: SB 89 BILL AMENDED:
SUBJECT: Artisan Distillery Liquor Distribution.
FIRST AUTHOR: Sen. Tomes BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: This bill provides that an artisan distiller may sell liquor to a retailer or dealer that
is located within 30 miles of the artisan distiller's distillery.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Alcohol and Tobacco Commission: The Alcohol and Tobacco
Commission would enforce the bill’s provision allowing artisan distillers to sell liquor to retailers and dealers
located within 30 miles of the distillery. Current law does not allow artisan distillers to sell to retailers or
dealers. The bill’s requirements are within the agency’s routine administrative functions and should be able
to be implemented with no additional appropriations, assuming near customary agency staffing and resource
levels.
Explanation of State Revenues: Liquor Sales: If the bill allows more alcoholic beverages to be sold than
what would otherwise be sold under current law, revenue from the Alcoholic Beverage Tax and Sales Tax
could potentially increase. However, any increase in revenue would likely be minor.
The Alcoholic Beverage Tax on liquor is equal to $2.68 per gallon. Revenue is distributed to the following
funds: General Fund ($1.00), State Construction Fund ($1.17), Enforcement and Administration Fund
($0.11), Pension Relief Fund ($0.34), and Addiction Services Fund ($0.06). Fifty percent of the revenue
distributed to the General Fund is allocated to cities and towns according to a formula based on population.
Sales Tax revenue is deposited in the General Fund (99.838%), Commuter Rail Service Fund (0.131%), and
Industrial Rail Service Fund (0.031%).
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Penalty Provision: Under current law, it is a Class B misdemeanor if an artisan distiller sells liquor to a
retailer or dealer. If fewer court cases occur and less revenue from fines is collected, revenue to both the
Common School Fund (from fines) and the state General Fund (from court fees) would decrease. The
maximum fine for a Class B misdemeanor is $1,000. However, any reduction in revenue would likely be
small.
Explanation of Local Expenditures: Penalty Provision: A Class B misdemeanor is punishable by up to 180
days in jail.
Explanation of Local Revenues: Liquor Sales: To the extent Alcoholic Beverage Tax revenue increases,
distributions to cities and towns could increase. However, any impact to local governments is not likely to
be significant.
Penalty Provision: If fewer court actions occur and fewer guilty verdicts are entered, local governments
would receive less revenue from court fees. However, any change in revenue would likely be small.
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected: Cities and towns, trial courts, local law enforcement agencies.
Information Sources:
Fiscal Analyst: Lauren Tanselle, 317-232-9586.
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