Colorado lawmakers are considering a 60% tax increase on the state’s local breweries, wineries, cideries and distilleries at a time they are facing the most challenging business conditions in generations, with record closures and down sales.
Colorado’s beer, wine and spirits producers stand united in opposition to the bill, HB26-1271, introduced by State Rep. Jamie Jackson, which would also increase costs on their customers when affordability is a top priority for Coloradans.
“We are arguably the most important beer producing state in America and the most dependent on beer jobs. We should be proud to be the State of Craft Beer. But Colorado’s breweries are also facing major challenges with nearly 200 closures since the pandemic,” said Shawnee Adelson, executive director of the Colorado Brewers Guild. “Increasing taxes on breweries in Colorado would be like Maine lawmakers going after lobster fishermen or Georgia with peach farmers. You simply don’t pass job-killing tax increases on a sector that has put you on the map, especially in a way that would go around the will of Coloradan voters.”
Beer, wine, cider and spirits are an essential part of Colorado’s economy and identity. Despite recent closures, Colorado is still home to nearly 420 breweries, 145 wineries, nearly 20 cideries, 100 distilleries, creating 131,000 good-paying jobs, more than $22 billion in economic activity for the state and pay more than $7.2 billion in taxes. If massive tax increases lead to more closures, much of this is at risk.
“Nationally, wine sales are down -10%. And while Colorado wine is making strides as one of the few bright spots as an emerging market, our lawmakers shouldn’t increase barriers on a growing sector for the state when so many others are contracting,” said Cassidee Shull, executive director of Colorado Association for Viticulture & Enology (CAVE). “Colorado alcohol producers already pay nearly $60 million in taxes and voluntarily invest in safe service and community programs. This additional taxation punishes the very businesses already part of the solution.”
Between inflation, tariffs, worker shortages, record closures and a downward trend of consumer spending, the last thing homegrown businesses need is a more than 60% tax increase. Alcohol sales are down across the board for beer, wine and spirits. A 2025 Gallup poll found American’s drinking at record lows, with just 54% saying they drink, the lowest percentage point in 90-years. Similarly, underage drinking is at historic lows thank to industry initiatives.
“Tourists from around the world come to Colorado to taste what we’re making,” said Lee Wood, president of the Colorado Distillers Guild and owner of Wood’s High Mountain Distillery. “But with the highest cost increases in generations and unprecedented challenges, this massive tax increase will only make it harder for us to invest in and create jobs for our local communities let alone survive another season.”
Coloradan’s can learn more about this bill and weigh in here.
