Issue link: http://winesandvines.uberflip.com/i/235941
grapegrowing A ton of Chardonnay yields $1,125 in taxes T here are people who criticize the use of irrigation water to cantly higher than California.) So for every ton of fruit, local, state and grow wine grapes and make wine, an alcoholic beverage. federal governments get back as much as $1,125 in taxes if the wine This agricultural product also makes considerable money to fill the public coffers, however. As an example, consider a ton of is sold in-state—almost the wholesale price of a ton of fruit. With a yield of 5 tons per acre, the federal government receives Mendocino County Chardonnay of good quality that sells FOB the $856 per acre, and state and local sales taxes are about $4,770 vineyard for $1,200 per ton: per acre. That doesn't take into account all the other taxes farm- 1 ton of fruit crushed yields about 160 gallons of wine per ton, ers pay including land and improvements, equipment, income which is about 64 cases X $90 ($7.50 per bottle) per case (for tax, payroll tax, etc. For a modest amount of water (about 0.25-1 good wine) = $5,760 wholesale value. That wine would probably acre-foot per acre), winegrowers return a considerable amount of sell for $15 per bottle retail = $11,520 per ton priced retail for money to the public coffers. finished wine. G.M. The federal government levies an excise tax of $1.07 per gallon for a winery larger than 250,000 gallons annually; that slides down to 17 cents per gallon for wineries producing 100,000 gallons or less. taxes on wine typical in California equal 8% x $11,520 = $922. Then, consider the state excise tax of 20 cents per gallon that is paid states also receive excise tax on wine that in many cases is signifi- winery on wine sold in California. That adds another $32 per ton. (Other jo rdan vineya rd & The higher rate would equal $171.20 per ton to the feds. Retail sales (925) 371-0796 - contact@infaco-usa.com www.infaco-usa.com See us at Unified booth #642 Win es & Vin es Ja n ua ry 20 14 49