A bill passed by the State Legislature in late June and signed into law by Governor Wolf brings fairness to sales at Pennsylvania brewpubs. In July, 2018, the Pennsylvania Department of Revenue (DOR) put out a tax bulletin requiring Pennsylvania breweries to collect a six percent sales tax for every dollar of beer sold directly to consumers via taprooms, tasting rooms, and brewpubs. Other restaurants pay sales tax on the wholesale amount (keg, case, etc.). The application of this tax was set to go into effect July 1, 2019. Earlier this year, the Chamber joined the statewide brewers guild in calling for a fix that provided fairness to the industry.
Under this bill, which amends the Tax Code, breweries will pay the sales tax on 25 percent of the retail sale, having the effect of taxing the wholesale amount. The Brewers of Pennsylvania applauded the General Assembly for passing the legislation. “The Brewers of Pennsylvania, in conjunction with the Governor’s office, were able to bring fairness and parity to sales tax collection among restaurants, taverns, grocery stores, and brewery taprooms across Pennsylvania,” said Chris Lampe, BOP President.
In April, the Chamber sent a letter to Senator John Gordner and Representatives Kurt Masser and David Millard asking that the industry be treated equitably in the assessment of sales tax. All three voted in favor of the legislation. The update will take effect October 1, 2019.