Philadelphia

Pennsylvania Beer Drinkers Could Be Paying More for Beer as New Brewery Tax Is in Effect

Tax on beer sold at Pennsylvania breweries goes into effect

It’s going to cost a little more to buy beer at Pennsylvania breweries.

What to Know

  • A tax on beer sold at Pennsylvania breweries and brew pubs is now in effect.
  • The tax level is determined by multiplying a quarter of all retail sales by the local sales tax.
  • The new tax is effectively 1.5%, 1.75% and 2% depending on where the brewery is located.

A tax on beer sold at Pennsylvania breweries and brew pubs is in effect, and some are passing along the higher cost to customers.

The Pittsburgh Post-Gazette reports that the use tax of about 1.5 percent that began Tuesday is technically a tax on the brewer for using its own products at its business.

One brewer tells the paper the tax will amount to about a dime on a $6 pint.

The tax level is determined by multiplying a quarter of all retail sales by the local sales tax. The sales tax is 6% in most of the state, but 7% in the Pittsburgh area and 8% in Philadelphia. That means the new tax is effectively 1.5%, 1.75% and 2%.

A bill setting the tax rate was enacted in June.

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