If you’re in charge of the beverage committee for your company’s next celebration, you might want to make your shopping trip a little earlier.

After state alcohol beverage tax regulations approved on June 10, 2008, California’s State Board of Equalization (SBE) will be taxing flavored malt beverages as distilled spirits. Previously, they were qualified as beer for taxation purposes.

What sounds like a small detail to the casual drinker could have serious implications for distributors — or really enthusiastic company picnics. The “beer rate” of taxation is currently $0.20 per gallon, but now that malt beverages are reclassified, they’ll be taxed at the distilled spirits rate of $3.30 per gallon.

Tags: Beer, California, Distributors, Malt beverages, SBE, Wine and spirits