US Appeals Court Rules 1868 Home Distilling Ban Unconstitutional

U.S. Court of Appeals for the Fifth Circuit issued a ruling on Friday stating that a federal law prohibiting the distillation of liquor at home is unconstitutional. The court found that the 1868 statute exceeds Congress's authority under the Constitution's Taxation Clause and Necessary and Proper Clause.

The law, enforced by the Alcohol and Tobacco Tax and Trade Bureau, imposes penalties including fines up to $10,000 and imprisonment up to five years. The case originated from a challenge by the Hobby Distillers Association and four of its members. The plaintiffs sought to distill spirits at home for personal use and hobby purposes.

They argued that regulation through licensing and taxation would be more appropriate than a complete prohibition. One plaintiff described interest in experimenting with an apple-pie vodka recipe. Another expressed a desire to create bourbon recipes to share with family and friends.

The association, which had 1,300 members as of 2023, advocates for the legalization of at-home hobby distilling.

Judge Edith Hollan Jones authored the opinion for the three-judge panel.

The judges determined that the ban does not function as a tax measure because it prevents the production of spirits, resulting in no taxable goods or revenue. They noted that while Congress can tax distilled spirits and regulate licensed production, a blanket ban cannot be justified solely as a tool to enforce taxes.

The government contended that the ban prevents tax evasion, as home distillers could conceal the strength or existence of operations.

The plaintiffs highlighted the risk of enforcement, citing warning letters sent by the Alcohol and Tobacco Tax and Trade Bureau to one member after purchasing equipment. The ruling questions the scope of congressional power, stating that under the government's logic, Congress could criminalize various at-home activities to prevent potential tax concealment, such as home-based businesses or remote work.