Hooch Wars -

S3:
Under Federal rules administered by ATF, it depends on how you use the still. You may not produce alcohol with these stills unless you qualify as a distilled spirits plant (see earlier question). However, owning a small still and using it for other purposes is allowed. You should also check with your State and local authorities - their rules may differ.

A still is defined as apparatus capable of being used to separate ethyl alcohol from a mixture that contains alcohol. Small stills (with a cubic distilling capacity of a gallon or less) that are used for laboratory purposes or for distilling water or other non-alcoholic materials are exempt from our rules.

If you buy a small still and use it to distill water or extract essential oils by steam or water extraction methods, you are not subject to ATF requirements. If you produce essential oils by a solvent method and you get alcohol as a by-product of your process, we consider that distilling. Even though you are using and recovering purchased alcohol, you are separating the alcohol from a mixture -distilling.


S4:
Under regulations in part 29 of title 27, Code of Federal Regulations, ATF has the right to require manufacturers of stills to give us the name and address of each customer. If we choose to impose this requirement, we inform the manufacturer of the stills by letter.


S5:
The Internal Revenue Code provides three methods for doing this. First, spirits that are denatured (i.e., treated with substances to make them unsuitable for human beverage consumption) may be used free of tax by a person who holds an industrial use permit. However, no permit is needed to use completely denatured alcohol or an approved article made from denatured spirits. Denatured spirits are suitable in a wide range of industrial applications, from mouthwash to fuel, etc., but not in products for internal human consumption, unless the spirits are removed. Second, undenatured tax-free alcohol may be used by persons such as research laboratories, hospitals, universities, and government agencies, if they hold an industrial use permit. Undenatured tax-free alcohol is prohibited from use in the manufacture of any product for sale. Third, undenatured distilled spirits on which the tax has been paid may be used in the manufacture of medicines, medicinal preparations, food products, flavors, flavoring extracts, and perfume; and then drawback may be claimed. This drawback is similar to a refund; however, the drawback rate is $1 per proof gallon less than the applicable tax rate. The Government keeps the difference. For further information on using distilled spirits in any of these ways, please contact the ATF National Revenue Center at (800) 398-2282.

12-47-106. Exemptions.

(d) Malt liquors produced pursuant to this subsection (2) may be transported and delivered by the producer to any licensed premise where consumption of malt liquors by persons over the age of twenty-one is authorized for use at organized affairs, exhibitions, or competitions, such as home brew contests, tastings, or judgings. Consumption shall be limited solely to the participants in and judges of such events. Malt liquors used for the purposes described in this paragraph (d) shall be served in portions not exceeding six ounces and shall not be sold, offered for sale, or made available for consumption by the general public.