Tax on beer sold at Pennsylvania breweries begins

Pennsylvania

HARRISBURG, Pa. (WHTM) – A tax on beer sold directly at Pennsylvania breweries and brewpubs is in effect, causing some breweries to pass the cost to consumers.

The tax is not a sales tax but a use tax on the brewery’s sales, meaning it should not directly be seen on your tab — unless the brewery chooses to raise the price of the product to offset the difference.

The tax is calculated by multiplying 25 percent 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, meaning the new tax is effectively 1.5%, 1.75%, and 2%.

The tax began Tuesday after having been signed in June.

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