The U.S. Supreme Court has agreed to review Department of Justice v. McNutt, a case challenging the constitutionality of an 1868 federal law that taxes distilled spirits and bans home distilleries.

The Conflict/Split Circuits 

The 5th U.S. Circuit Court of Appeals unanimously ruled in favor of Scott McNutt and the Hobby Distillers Association, striking down the ban on home distilling because it violates the Taxation Clause of the U.S. Constitution.

The 6th U.S. Circuit Court of Appeals ruled the exact opposite way in Ream v. Department of the Treasury, upholding the home distilling ban as a “necessary and proper” measure to prevent tax evasion.

Why McNutt was Chosen

According to SCOTUSblog, the Supreme Court chose to review the government’s appeal in McNutt over Ream because McNutt had clearer legal standing; he had already received an enforcement warning letter from the Alcohol and Tobacco Tax and Trade Bureau (TTB).

Timeline

The Supreme Court accepted the case from its Oct. 16 conference. Oral arguments are expected early next year, with a final decision likely by late June or early July.