Pennsylvania pitches 6% tax on craft beers in 2019

Pennsylvania is set to implement a new tax on local breweries in the state who sell craft beer in their taprooms and during tastings.

As announced by the Pennsylvania Department of Revenue in a recent bulletin, the tax has been in law since 1971, but will be enforced starting July 1, 2019.

“The obligation of manufacturers of beer to collect and remit sales tax has been in Pennsylvania’s Tax Reform Code since its inception in 1971,” said Pennsylvania Department of Revenue Communications Director Jeffrey Johnson. “The Tax Reform Code specifically states that a brewery shall collect and remit sales tax on sales of malt or brewed beverages to any person for any purpose except to distributors or importing distributors.”

For every dollar charged a tax of six percent will be collected on all craft and malt beer sales in breweries.

Local brewers worry about bottom line

Some local brewers aren’t happy given it will effect their bottom line.

“Whether its cost of yeast, whether its cost of malt, whether its cost of labor or food in your breweries. It’s all about controlling costs. So for a brewery to absorb that additional tax, it’s going to be impossible,” Randy mcKinley of Sly Fox Brewing in Pottstown told Fox29.

Initially the tax on craft beer was to be enforced by January 1, 2019 but it appears the state needs more time to determine just how they will monitor and collect the tax increase.