{"data":{"id":"us-ky/krs-243.157","jurisdiction":"us-ky","citation":"KRS 243.157","heading":"Business authorized by a microbrewery license -- Functions licensee","body":"permitted to perform -- Microbrewery to pay wholesale and excise taxes on\nsales of malt beverages -- Sampling by employees.\n(1) A microbrewery license shall authorize the lic ensee to perform the following\nfunctions:\n(a) Engage in the business of a brewer under the terms and conditions of KRS\n243.150, provided that production of malt beverages at the microbrewery shall\nnot exceed fifty thousand (50,000) barrels in one (1) year;\n(b) Serve on the premises complimentary samples of malt beverages produced by\nthe microbrewery in amounts not to exceed sixteen (16) ounces per patron,\nprovided the microbrewery is located in wet territory or a precinct that has\nauthorized the sale of alc oholic beverages at microbreweries under KRS\n242.1239;\n(c) Sell malt beverages produced on the premises of the microbrewery to licensed\ndistributors;\n(d) Sell malt beverages produced on the premises of the microbrewery for on- and\noff-premises purposes in accordance with subsection (3)(b) and (c) of this\nsection, pursuant to the following:\n1. Without restriction on the amount of malt beverages sold by the drink\nfor on -premises consumption provided the microbrewery is located in\nwet territory or a precinct t hat has authorized the sale of alcoholic\nbeverages at microbreweries under KRS 242.1239; and\n2. With a restriction on the amount of malt beverages sold for off -premises\nconsumption, in an aggregate amount not to exceed thirty -one (31)\ngallons per person pe r day that shall not include more than three (3)\ncases in case format;\n(e) Sell:\n1. Unlimited amounts of malt beverages by the drink; and\n2. Not more than one (1) case of packaged malt beverages;\nproduced on the premises of the microbrewery to consumers at fairs, festivals,\nand other similar types of events located in wet territory, in accordance with\nsubsection (3)(b)2. and (c)2. of this section; and\n(f) Sell and deliver up to two thousand five hundred (2,500) barrels of malt\nbeverages annually to any retail license holder, provided that:\n1. Any products sold and delivered under this paragraph that are not\notherwise registered by a licensed distributor shall be registered with the\ndepartment by the microbrewery; and\n2. The microbrewer notifies the distributor of any self -distribution delivery\nby electronic or other means.\n(2) A microbrewery license shall not be deemed to be incompatible with any other\nlicense except for a distributor's license under the provisions of KRS 243.180.\n(3) In accordance with the provisions of this section, a microbrewery license holder\nmay:\n(a) Hold retail drink and package licenses both on and off the premises of the\nmicrobrewery. The holder of a microbrewery license is exempt from the\nprovisions of KRS 244.570 and 244.590 as applied to any retail licenses held\nby the microbrewery license holder, and from any other sections which would\nrestrict the co -ownership of the microbrewery license and any retail licenses\ndescribed in this section;\n(b) Sell malt beverages produced on the premises of the microbrewery for on -\npremises purposes without having to transfer physical possession of those\nmalt beverages to a licensed distributor provided:\n1. The microbrewery possesses a retail drink license for tho se premises;\nand\n2. The microbrewery reports and pays all taxes required by subsection\n(5)(a) and (b) of this section to the Department of Revenue at the time\nand in the manner required by the Department of Revenue in accordance\nwith its powers under KRS 131.130(3); and\n(c) Sell malt beverages produced on the premises of the microbrewery for off -\npremises purposes without having to transfer physical possession of those\nmalt beverages to a licensed distributor provided that:\n1. The microbrewery possesses a retail package license for those premises;\nand\n2. The microbrewery reports and pays all taxes required by subsection\n(5)(a) and (b) of this section to the Department of Revenue at the time\nand in the manner required by the Department of Revenue in accordance\nwith its powers under KRS 131.130(3).\n(4) The provisions of subsection (3)(b) and (c) of this section shall apply only to malt\nbeverages that are produced by the microbrewery at its licensed premises and:\n(a) Offered for sale by the microbrewery at that s ame premises under the\nmicrobrewery's retail drink or package license; or\n(b) Offered for sale by the microbrewery at a fair, festival, or other similar type of\nevent as authorized under subsection (1)(e) of this section.\nAll other malt beverages produced by the microbrewery which are offered for retail\nsale shall be sold and physically transferred to a licensed distributor in compliance\nwith all other relevant provisions of KRS Chapters 241 to 244, and a licensed\nmicrobrewery shall not otherwise affect sa les of malt beverages directly to retail\ncustomers except as provided in subsection (3)(b) and (c) of this section under KRS\n243.027 to 243.029 if the microbrewery holds a direct shipper license.\n(5) (a) A microbrewery selling malt beverages in accordance with subsection (1)(f) or\n(3)(b) and (c) of this section shall pay all wholesale sales taxes due under KRS\n243.884. For the purposes of this subsection, \"wholesale sales\" means a sale\nof malt beverages made by a microbrewery under subsection (1)(f) or (3)( b)\nand (c) of this section, as applicable.\n(b) A microbrewery shall pay the excise tax on malt beverages in accordance with\nKRS 243.720(3) and 243.730 and shall be entitled to the credit set forth in\nKRS 243.720(3)(b).\n(6) A microbrewery shall not be located in dry territory.\n(7) An employee of a microbrewery may sample the products produced by that\nmicrobrewery for purposes of education, quality control, and product development.\n(8) This section does not exempt the holder of a microbrewery license from the\nprovisions of KRS Chapters 241 to 244, nor from any rules of the board as\nestablished by administrative regulations, nor from regulation by the board, except\nas expressly stated in this section. The provisions of this section shall not be\ndeemed inconsistent with the provisions of KRS 244.602.\n(9) Nothing in this section shall be construed to vitiate the policy of this\nCommonwealth, as set forth in KRS 244.167 and 244.602, supporting an orderly\nthree (3) tier system for the production and sale of malt beverages.","path":["KRS Chapter 243"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50971","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:53Z","sha256":"86b66d11e68300019c905625b6f81dc7b32f2bc92b5bff923462ea4abc487cc8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-243.156","next":"us-ky/krs-243.160"},"notice":"GroundRules: Original legal text. Not legal advice."}