Gunter

Gunter.city — Small town. Big heart. Your neighborhood news.

Local business? Support local news on Gunter.city

Back to Texas

U.S. Supreme Court agrees to decide whether the federal ban on home distilling is constitutional, taking up a case out of Texas

The justices granted the government's appeal Monday. The 5th Circuit had ruled the 1868 law went beyond Congress' taxing power, while the 6th Circuit upheld it, leaving a split the court will now settle.

Coralie Stroud· AI-assisted, edited by Jake Team

October 19, 20262 min read

Supreme Court Justice - illustration, Jake Team LLC

The U.S. Supreme Court said Monday it will decide whether Americans can legally make whiskey, bourbon and other spirits at home, taking up a Texas case in which a federal appeals court threw out the long-standing ban.

The court's order list for Oct. 19 shows the justices granted the Justice Department's petition in *Department of Justice v. McNutt*. SCOTUSblog reported that argument is likely early next year, with a ruling expected by late June or early July.

What the law does

The challenged law, which SCOTUSblog dates to 1868, taxes distilled spirits and also bars people from running a still in their home. Violators can face a fine of up to $10,000, up to five years in prison, or both.

The Hobby Distillers Association, a nonprofit, sued in 2023 along with some of its members who want to distill at home. The Center Square identified Scott McNutt, whose name is on the case, as a Texas resident.

How the courts split

The 5th U.S. Circuit Court of Appeals sided with the hobbyists. According to SCOTUSblog's summary, the panel found that Congress may tax liquor but that a flat ban on home stills raises no revenue and in fact stops production that could be taxed.

The court also rejected the argument that the ban is a valid way to prevent tax evasion, warning that such reasoning would leave Congress' taxing power without limits.

The Justice Department asked the high court in August to reverse that ruling. Its lawyers argued that Congress targeted home stills because a distiller working in a house or an attached building can more easily hide an operation and avoid inspections, and with them the tax.

The hobbyists also asked the justices to hear the case, while urging them to leave the 5th Circuit decision intact. In their brief, they wrote that it raises fundamental questions about how far federal power reaches.

A separate federal appeals court, the 6th Circuit, reached the opposite result in a challenge brought by John Ream, a retired aerospace engineer who owns a brewery, finding the ban a legitimate way for Congress to collect the spirits tax. Ream also petitioned the Supreme Court.

The government agreed the issue needed review but asked the justices to take the McNutt case instead, which the court did Monday.

The government collected $11.1 billion in alcohol taxes in fiscal year 2023, about $6.8 billion of it from distilled spirits, The Center Square reported, citing the Congressional Research Service.

Sources

supremecourt.gov

scotusblog.com

KTEN

Share

Coralie Stroud· AI-assisted, edited by Jake Team

Coralie Stroud writes about community life, schools, public safety, and local events in Gunter.

Related Stories

More in Sport