A recent federal lawsuit contends that the longstanding federal ban on at-home distilling, a remnant from the Prohibition Era, is in violation of the U.S. Constitution. The Hobby Distillers Association, representing over 1,300 members and backed by the Competitive Enterprise Institute (CEI), initiated legal proceedings against the Alcohol and Tobacco Tax and Trade Bureau (TBB) and the Department of Justice (DOJ) this month, arguing that the ban not only constitutes “bad policy” but also contradicts the constitutional principles of limited government.
According to Dan Greenberg, General Counsel for CEI, the at-home distilling ban exceeds the powers granted to Congress by the Constitution. The lawsuit emphasizes that the Constitution established a federal government with limited and enumerated powers, and the ban on at-home distilling falls outside the boundaries of these powers. While homebrewing was federally legalized in 1978 under President Jimmy Carter, home distilling remained illegal.
The lawsuit challenges the ban on constitutional grounds, arguing that it does not fall under Congress’ authority to regulate interstate commerce or the federal government’s taxing power since it “raises no revenue.” The ban imposes penalties of up to five years in prison or a $10,000 fine, as per the TTB.
CEI attorney Devin Watkins suggests that the regulation of at-home distilling should be appropriately handled at the state level. Some states, such as Alaska, Arizona, Massachusetts, and Missouri, permit individuals to distill alcohol at home. However, even in states where it is allowed, the federal ban poses a risk of prosecution for home distillers.
While some states, like Ohio, have introduced bills to permit home distilling at the state level, the federal ban remains a significant hurdle. The lawsuit highlights the discrepancy between the federal ban and state laws, creating uncertainty for individuals engaged in home distilling activities.
The federal ban, described as “somewhere between 100 and 150 years old,” is part of a tax collecting statute unrelated to the legitimate powers of the federal government, according to Greenberg. He notes that distilling beverage alcohol is legal in certain circumstances, as long as it is not done on one’s home property. The lawsuit stresses that the plaintiffs simply seek to pursue the hobby of distilling beverage alcohol within the bounds of the law.
The Hobby Distillery Association’s attempts to lobby Congress for the repeal of the federal prohibition have allegedly faced obstacles from an industry reluctant to face increased competition, as stated in the lawsuit.
