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Distillers rejoice: Businesses no longer subject to tax for making sanitizer

Earlier this week, distillers said the US Food & Drug Administration announced they would have to pay the government for making sanitizer during the pandemic.

WASHINGTON — Distillers are breathing a sigh of relief after they learned Friday afternoon they will be subject to fees from the federal government for volunteering the pandemic relief effort.

Hundreds of distillers across the country started producing sanitizer around the beginning of the coronavirus' spread.

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However, earlier this week, Becky Harris, president of the American Craft Spirits Association, said distillers started to receive letters from the U.S. Food and Drug Administration regarding the sanitization efforts.

"A lot of people were really upset about it," she said.

Harris said the agency announced distilleries would be subject to a fee for their production of an over-the-counter drug. She said her association calculated many distillers would have to pay the federal government roughly $14,000 by February 11.

"That was really shocking to us because some of these small distilleries had been making as little as like a gallon (of sanitizer) a month, that they would donate to their local fire department or to hospitals," Harris said.

Distillers immediately started to reach out to lawmakers and journalists to bring attention to the fee announcement, according to Harris.

On Friday, she said the government finally reached a resolution.

"Basically gave us permission to raise a glass tonight and take a deep breath," she said.

In a tweet, US Department of Health & Human Services Chief of Staff Brian Harrison announced distilleries would no longer be subject to the fees that were announced by the FDA.

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"Small businesses who stepped up to fight COVID-19 should be applauded by their government, not taxed for doing so," the statement reads. "I'm pleased to announce we have directed FDA to cease enforcement of these arbitrary, surprise user fees. Happy New Year, distilleries, and cheers to you for helping keep us safe!"

Harris said the entire ordeal left her with an important thought.

"We have the power as citizens in this country to make change happen," she said.

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