As we previously wrote, the state of Pennsylvania deemed September as Craft Beer Month. Now that the month has come and gone the state is on to more pressing issues.
Like taxing your beer.
As we wrote towards the end of 2018, the state was preparing to implement a tax on all beers purchased inside breweries. And that day has finally come.
Beginning October 1st, 2019 this tax will officially go into effect. You can read the full Tax Bulletin released by the state here. Bob Batz, reporter for the Pittsburgh Post Gazette, wrote a full breakdown of how the tax will impact local breweries.
“The states tax is calculated by multiplying 25% of all retail sales by the local sales tax — 6% in most places, but 7% in Allegheny and 8% in Philadelphia. So the new tax is effectively 1.5%, 1.75% and 2%, depending on where the brewery is.” Batz wrote.
While the impact on sales may be minimal per pint, the impact on breweries can have a serious effect on the long term. Depending on yearly sales, some breweries can see an increase of tens of thousands of dollars per year in lost revenue. More for even larger breweries.
Breweries are mentioned in the aforementioned article as struggling whether or not to pass this tax along to the consumer. Jason Lavery of Lavery Brewing is quoted as saying “[they’re] going to raise..prices by a quarter for a beer..and $1 for cases.”
Cheers to another successful PA Craft Beer Month!
