This Week at AVA

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July 26, 2000
TO: AVA Members
FR: Simon Siegl, President
RE: This Week at AVA

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  • FEDERAL ISSUES

    • Senate Agriculture Appropriations
      The Senate last week passed the Agriculture Appropriations bill, with two last minute changes of interest to members. Included in the bill is language which clarifies the authority of USDA to allow labeling of wines made from organically grown grapes when sulfur dioxide has been added to the wine. USDA lawyers had contended that the Organic Foods Production Act prohibited them from acting in that manner. We will still have to work with department rulemaking to ensure that they follow through with a reasonable rule. Also included is $7.14 in emergency funding for Pierce's Disease containment and control efforts.
    • Estate Tax Passes Both Houses of Congress
      An important milestone has been reached as both the Senate and the House have passed full repeal of the estate tax. Unfortunately the measure is certain to be vetoed by the President. Still, both houses of Congress voted for repeal with substantial and bipartisan majorities, setting the stage for eventual repeal of the unpopular and destructive tax in the next congress. It is a good bet that, at the very least, in a few years, family businesses will be able to pass from one generation to the next without taxation.

    • Minimum Wage/ Special Occupation Tax
      Repeal of the special occupation tax is still expected this year as part of a package to increase the minimum wage. That legislation is currently stuck in controversy but should break loose in September.

    • State Survey
      AVA is surveying all states to determine the wide diversity of state mechanisms for encouraging development of vineyards and wineries. We expect to have preliminary results of this survey in about two months and will report to the membership.

    • Cider Flavors
      Congressman Rick Hill of Montana has introduced a bill (H.R. 4851) which would allow the use of flavors in hard cider and would allow pears to be the source of the base wine in addition to apples. Currently cider is able to take advantage of the lowest excise tax rate for alcohol products, 22.6 cents per gallon. Wine is at $1.07 and beer at just over 58 cents.

AVAAmerican Vintners Association
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