ALEXANDRIA, Va. – On behalf of beer distributors nationwide, National Beer Wholesalers Association (NBWA) President David Rehr recently sent a letter to President George W. Bush asking for his signature on legislation passed by the U.S. Congress that provides a three-year suspension of the special occupational tax (SOT).

“I am writing to express our support for temporary repeal of this burdensome tax and to urge you to quickly sign this legislation into law,” said Rehr. He added that beer distributors alone employ more than 96,000 hard working Americans, and that SOT repeal – even for a three year period – is long overdue and a reasonable way to give small businesses the tax relief they need. Rehr also added that small businesses, which account for creating between 60 and 80 percent of the nation’s net new jobs each year, are depending on the President to help repeal this onerous tax that has plagued small entrepreneurs for decades.

As passed by Congress, H.R. 4520, the “American Jobs Creation Act of 2004,” includes a three-year suspension of the SOT that is imposed on beer distributors, brewers and retailers. The tax was originally introduced to help fund the Civil War and currently poses an unfair tax burden on small businesses, including beer wholesalers, nationwide. Annually, beer wholesalers pay $500 per location in compliance with this tax. Due to this “per location” requirement, small retailers and wholesalers often bear a disproportionate burden of this tax.

Moreover, the 2001 Joint Committee on Taxation called for elimination of the SOT, noting that its revenue is not used directly to offset the cost of regulating the alcohol industry and that the tax represents a potential source of innocent noncompliance by taxpayers.

Working with a coalition of its industry allies, NBWA lobbied for inclusion of the three-year SOT suspension in H.R. 4520 as the legislation advanced through Congress.

A copy of the letter is available upon request.