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 6917 NOTE PREPARED: Feb 23, 2024
BILL NUMBER: SB 205 BILL AMENDED: Jan 18, 2024
SUBJECT: Collaborative Brewing.
FIRST AUTHOR: Sen. Alting BILL STATUS: Enrolled
FIRST SPONSOR: Rep. Manning
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill allows a small brewery to manufacture beer for another small brewery
if certain requirements are met.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Alcohol and Tobacco Commission (ATC): The ATC would administer
the bill’s provisions. 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: Beer Sales: To the extent that alcoholic beverage sales for beer increase
as a result of collaborative brewing increasing the amount and availability of beer, Alcoholic Beverage Tax
and Sales Tax revenue could potentially increase. However, any increase would be minimal.
The Alcoholic Beverage Tax rate on beer is equal to $0.115 per gallon and is distributed to the following
funds: General Fund ($0.04), State Construction Fund ($0.0375), Enforcement and Administration Fund
($0.0175), and Addiction Services Fund ($0.02). Fifty percent of the General Fund distribution 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%).
Explanation of Local Expenditures:
SB 205 1 Explanation of Local Revenues: Alcoholic Beverage Sales: To the extent that Alcoholic Beverage Tax
revenue increases, distributions to cities and towns could increase. [See Explanation of State Revenues.]
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected: Cities and towns.
Information Sources: Legislative Services Agency. Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2023.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
SB 205 2