Tax on beer sold at Pennsylvania breweries goes into effect

Oct 02 2019 | 03:46 PM

(AP) 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 use tax of about 1.5 percent that began Oct. 1 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.