1. Statutes

Oklahoma

Updated: 10/2010

Status: Permitted subject to state issued permit

Statute

oklahomaTitle 37 Sections 163.1-3, 505, 520A, and 554.

Discussion

HB2348 was signed by Governor Brad Henry May 11, 2010, legalizing homebrewing in Oklahoma.  The law went into effect August 26, 2010. Thanks to AHA member Gary Shellman and bill sponsor Rep. Colby Schwartz for championing this bill through to passage.

Prior to the passage of HB2348, Oklahoma allowed the home production of cider and wine for personal use pursuant to a license first obtained from the Alcoholic Beverage Laws Enforcement (ABLE) Commission.  HB2348 added beer to the fermented beverages that can legally be produced for personal use in Oklahoma. The bill also expands the definition of personal use to include “transport to and use at organized affairs, exhibitions or competitions, including, but not limited to, homemaker contests, tastings or judgings.”  HB2348 reclassifies the previously required “license” as a “permit.”

§37-163.1 allows for the fermentation of “low-point beer” (0.5%-3.2% ABW) for personal use.

§37-163.2 defines “low-point beer.”

§37-163.3 establishes the state tax on “low-point beer” and includes and exemption to payment of that tax for the holders of a personal use permit .

§37-505 allows for the fermentation of beer, cider and wine for personal use by holders of a personal use permit.

§37-506 defines beer and wine.

§37-520 authorizes the Oklahoma Alcoholic Beverage Laws Enforcement Commission to issue personal use permits to individuals of 21 years of age or older for the fermentation of beer, cider and wine for personal use and not for sale.

§37 554 exempts fermentation of beer, cider and wine for personal use from taxation, and includes a requirement that those exempt from paying tax on fermented beverages to possess and have available the proper permit from the Alcoholic Beverage Laws Enforcement Commission.

Applicable Statutory Materials

§37-163.1.  Intoxicating beverages and low-point beer distinguished – Application of statute.
All beverages containing more than three and two-tenths percent (3.2%) alcohol by weight and all mixed beverage coolers, as defined in Section 506 of this title, regardless of percent of alcoholic content, are hereby declared to be intoxicating.  All beverages containing more than one-half of one percent (1/2 of 1%) alcohol by volume and not more than three and two-tenths percent (3.2%) alcohol by weight are hereby declared to be low-point beer.  Wherever the term “nonintoxicating beverage” or “nonintoxicating malt beverage” appears in the Oklahoma Statutes, such term shall be construed to mean low-point beer.  The manufacture, distribution and sale of low-point beer, including but not limited to beer or cereal malt beverages, are hereby declared subject to the provisions of Section 163.1 et seq. of this title.  Provided, that nothing herein shall prevent a person from making low-point beer, as defined by Section 163.2 of this title, by simple fermentation for personal use if the maker of such beverages has first applied for and possesses a valid personal use permit issued by the Alcoholic Beverage Laws Enforcement Commission, as provided in Section 4 of this act, and the total volume of low-point beer produced in any given calendar year is less than two hundred (200) gallons.  No beverage made pursuant to a personal use permit shall be sold or offered for sale.

§37-163.2.  Definitions.
In the administration of Section 163.1 et seq. of this title, the following words and phrases are given the meanings respectively indicated:
1.  “Low-point beer” means and includes beverages containing more than one-half of one percent (1/2 of 1%) alcohol by volume, and not more than three and two-tenths percent (3.2%) alcohol by weight, including but not limited to beer or cereal malt beverages obtained by the alcoholic fermentation of an infusion of barley or other grain, malt or similar products;

§37-163.3.  Tax on low-point beer – Exemptions from other taxes.
There is hereby levied on all low-point beer containing more than one-half of one percent (1/2 of 1%) of alcohol measured by volume and not more than three and two-tenths percent (3.2%) of alcohol measured by weight which are manufactured and sold, or removed for consumption or sale, within this state a tax of Eleven Dollars and twenty-five cents ($11.25) for every barrel containing not more than thirty-one (31) gallons, and at a like rate of tax for any other quantities or for a fractional part of a barrel.  Provided, any low-point beer manufactured in this state for export or produced pursuant to a valid personal use permit issued by the Alcoholic Beverage Laws Enforcement Commission pursuant to Section 4 of this act shall not be taxed as provided in this section.

§37-505.  Manufacture, sale, possession, shipment, etc. prohibited except as provided in act – Exceptions – Penalties.
A.  No person shall manufacture, rectify, sell, possess, store, import into or export from this state, transport, or deliver any alcoholic beverage except as specifically provided in the Oklahoma Alcoholic Beverage Control Act.  Provided, that nothing herein shall prevent the possession and transportation of alcoholic beverages for the personal use of the possessor and his or her family and guests, so long as the Oklahoma excise tax has been paid thereon, except for beer.  Provided, further, that nothing herein shall prevent a person from making beer, as defined by Section 506 of this title, cider, or wine, as defined by Section 506 of this title, by simple fermentation and without distillation for personal use if the maker of such beverages has first applied for and possesses a valid personal use permit issued by the Alcoholic Beverage Laws Enforcement Commission as provided in Section 4 of this act and the total volume of beer, cider or wine produced in any given calendar year is less than two hundred (200) gallons.  No beverages made pursuant to a personal use permit shall be sold or offered for sale.

§37-506.  Definitions.
5.  “Beer” means any beverage containing more than three and two-tenths percent (3.2%) of alcohol by weight and obtained by the alcoholic fermentation of an infusion or decoction of barley, or other grain, malt or similar products.  “Beer” may or may not contain hops or other vegetable products.  “Beer” includes, among other things, beer, ale, stout, lager beer, porter and other malt or brewed liquors, but does not include sake, known as Japanese rice wine;
40.  “Wine” means and includes any beverage containing more than one-half of one percent (1/2 of 1%) alcohol by volume and not more than twenty-four percent (24%) alcohol by volume at sixty (60) degrees Fahrenheit obtained by the fermentation of the natural contents of fruits, vegetables, honey, milk or other products containing sugar, whether or not other ingredients are added, and includes vermouth and sake, known as Japanese rice wine;

§37-520.
A. The Alcoholic Beverage Laws Enforcement Commission is authorized to issue, upon application of a person who is twenty-one (21) years of age or older, an annual personal use permit which when granted authorizes the holder thereof to make, store, possess and transport for personal use, low-point beer as defined by Section 163.2 of this title, beer as defined by Section 506 of this title, fermented non-distilled ciders, and wine as defined by Section 506 of this title.  The total volume of each authorized beverage made and possessed for personal use in a given calendar year shall be limited to a volume less than two hundred (200) gallons.  The term “personal use” as used in this section and Sections 163.1 and 505 of Title 37 of the Oklahoma States means the individual making beverages pursuant to a valid personal use permit issued by the Alcoholic Beverage Laws Enforcement Commission produces such beverages solely for his or her use and consumption, for consumption by his or her family and guests, and for transport to and use at organized affairs, exhibitions or competitions, including, but not limited to, homemaker contests, tastings or judgings.  No beverage made pursuant to a personal use permit shall be sold or offered for sale.

§37 554.  Exemptions from excise tax.
A.  The excise tax levied by Section 553 of this title shall not apply to:
4.  Beer, cider and wine made for personal use pursuant to a personal use permit issued as provided in Section 505 of this title;
B.  As a condition precedent to the allowance of any exemption authorized by subsection A of this section:
1.  Where a license or permit is required by the Oklahoma Alcoholic Beverage Control Act, for such use, the person claiming any such exemption must have obtained from the Alcoholic Beverage Laws Enforcement Commission the license or permit authorizing such exempt use; and
2.  There must be furnished such proof of the exclusive use for such exempt purposes as the Oklahoma Tax Commission may require.

State Alcohol Beverage Control Agency

  • Alcoholic Beverage Laws Enforcement Commission (ABLE)
  • 4545 North Lincoln Blvd., Suite 270
  • Oklahoma City, Oklahoma 73105
  • Phone: 405.521.3484
  • Fax: 405.521.6578

Note: The information presented here is to the best of our knowledge and should not be used as a substitute for legal advice specific to the laws of your state.

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