Pa. craft beer tax takes effect

Pennsylvania

A new tax goes into effect Tuesday on craft beer breweries in the state of Pennsylvania

Craft beer generic

YOUNGSTOWN, Ohio (WKBN) – A new tax goes into effect Tuesday on craft beer breweries in the state of Pennsylvania.

The state will begin imposing a “use tax” of about 1.5 percent on beer that is sold directly from breweries. That percentage could be higher depending on the county.

The tax is calculated by multiplying 25 percent of all retail sales by the local sales tax, which could be different by county. For instance in Allegheny County, the tax is 1.75.

The tax is not a sales tax but a use tax on the brewery’s sales. Customers won’t see it as a line item on their tab, but breweries could pass the increase onto customers in the cost of beer.

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