A federal appeals court has ruled that a 158-year-old ban on home distilling is unconstitutional, stating it exceeds Congress’s constitutional authority to levy taxes.
The Fifth Circuit Court of Appeals in New Orleans ruled Friday in favor of the nonprofit Hobby Distillers Association and four of its members. The group argued individuals should be free to distill spirits at home for personal consumption or as a hobby.
The prohibition originated from legislation passed during Reconstruction in July 1868, intended to prevent liquor tax evasion. Violators faced penalties of up to five years in prison and a $10,000 fine under the law.
In writing for a three-judge panel, Circuit Judge Edith Hollan Jones argued that the ban not only failed to generate tax revenue but also overstepped federal authority by criminalizing private activities without a clear constitutional basis. Judge Jones noted that the government’s logic could theoretically allow Congress to outlaw any in-home activity—such as remote work or small businesses—that might evade taxation.
The decision upholds a July 2024 ruling by U.S. District Judge Mark Pittman in Fort Worth, Texas, who temporarily stayed his order to permit appeal.
The case was brought by the Competitive Enterprise Institute, a libertarian legal group that has long challenged federal regulatory power. The Hobby Distillers Association was founded in 2013 by Rick Morris, who advocated for legalization through lobbying and litigation after congressional efforts stalled. Larger commercial distillers had previously blocked legislative change, possibly viewing home distillers as potential competitors.
Jones wrote: “Without any limiting principle, the government’s theory would violate this court’s obligation to read the constitution carefully to avoid creating a general federal authority akin to the police power.”
Devin Watkins, a lawyer representing the Hobby Distillers Association, called the ruling an important decision about the limits of federal power. Andrew Grossman, who argued the non-profit’s appeal, described it as “an important victory for individual liberty” that enables plaintiffs to “pursue their passion to distill fine beverages in their homes.”
“I look forward to sampling their output,” Grossman added.
