SACRAMENTO, Calif. - Flavored malt beverages (FMBs) and beer have much in common, and an appeals court ruling has decided the two alcoholic drinks should be taxed the same, the San Francisco Chronicle reports. The Third District Court of Appeal€™s decision would repeal the excise tax levied by the state Board of Equalization on flavored malt beverages in 2008.

Currently, beer receives a 20 cent-per-gallon tax, while distilled spirits are hit with a t $3.30 or $6.60-per gallon tax, according to alcohol content. The ruling€™s impact is rather small because most makers of FMBs reconfigured their products to evade the tax.

The court said FMBs are a "hybrid" of beer and distilled spirits, but because the Department of Alcoholic Beverage Control classified alcopops as beer, the drinks should be taxed as such. Diageo Guinness USA and the Flavored Malt Beverage Coalition sued when the beverages were taxed at the distilled spirit rate.

"The Legislature did not delegate authority to the board to adopt its own classification of alcoholic beverages," wrote Justice Harry Hull. He also pointed out that the law identifies distilled spirits as "spirits of wine, whiskey, rum, brandy and gin" and any mixtures of those, but neglects to extend that definition to include beer mixtures. The appeals court ruling was unanimous.

Anheuser-Busch InBev said earlier this year that it would be adding more malt beverages to its lineup.