Arkansas lawmakers revise beer definitions and tax rates in SB564 amendment

On April 14, 2025, the Arkansas State Legislature introduced Senate Bill 564, a significant legislative proposal aimed at amending the definitions and regulations surrounding beer production and sales within the state. The bill seeks to redefine "beer" to include malt beverages with an alcoholic content of up to ten percent by weight, effectively doubling the previous limit of five percent. This change is intended to align Arkansas's regulations with evolving industry standards and consumer preferences.

Key provisions of SB564 include amendments to several sections of the Arkansas Code, specifically targeting definitions related to microbrewery-restaurants, the Arkansas Small Brewery Act, and private club permits. The bill also proposes adjustments to the tax structure for beer, maintaining a tax rate of $7.50 per barrel for beers with an alcoholic content of up to ten percent. This tax rate is designed to encourage local brewing while ensuring state revenue from alcohol sales remains stable.

The introduction of SB564 has sparked notable debates among lawmakers and stakeholders in the brewing industry. Proponents argue that the bill will foster growth in Arkansas's craft beer sector, allowing local breweries to produce a wider variety of products that meet consumer demand. They emphasize the potential for increased economic activity and job creation within the state. Conversely, opponents express concerns about public health implications, arguing that higher alcohol content could lead to increased consumption and associated risks.

Experts in the field suggest that the bill's passage could have significant economic implications, potentially positioning Arkansas as a more attractive destination for craft breweries and beer enthusiasts. If enacted, SB564 could enhance the state's reputation in the craft beer market, encouraging tourism and local business growth.

As the legislative process unfolds, the bill will likely undergo further scrutiny and possible amendments. Stakeholders are closely monitoring discussions, anticipating how the final version of SB564 will shape the future of Arkansas's brewing landscape. The next steps will involve committee reviews and potential votes in both legislative chambers, with advocates urging swift action to capitalize on the growing craft beer trend.