Colorado Brewers Push Back on Proposed Alcohol Tax Hike

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A proposed bill in the Colorado legislature would create new per-gallon fees on beer, wine, and liquor to fund addiction and recovery services. Local craft brewers say the additional costs would further strain their industry, already facing declining sales and rising expenses, and could force them to raise prices or even shut down operations.

Why it matters

The craft brewing industry has been a source of economic growth and community pride in Colorado, but the sector has faced significant challenges in recent years. This proposed tax increase could threaten the viability of many small, independent breweries that are still recovering from the impacts of the pandemic.

The details

The bill, introduced by Democratic Rep. Jamie Jackson, would create a per-gallon fee on alcohol manufacturers and distributors, with the revenue going into a fund for substance abuse prevention and treatment programs. The fees would be capped at 5 cents per gallon for beer, 7 cents per liter for wine, and 35 cents per liter for liquor. However, the Colorado Brewers Guild argues that even these relatively small fees could be the "tipping point" for some breweries, especially smaller operations that produced around 10,000 gallons of beer last year. The guild says the industry is already facing numerous challenges, including declining consumption and rising costs, and additional fees could lead to more brewery closures and job losses.

• The proposed bill would take effect in August 2026 if approved.

What they’re saying

What’s next

The proposed bill will be considered by the Colorado state legislature in the coming months. If approved, the new alcohol fees would take effect in August 2026.