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Tax on beer sold at Pennsylvania breweries goes into effect

Associated Press
Manager Cathy Lau serves a craft beer at Mudhook Brewing Co. Friday, Feb. 8, 2019. Mudhook is one of more than 30 restaurants participating in Restaurant Week York 2019, the city's ninth annual foodie event. Between Monday, Feb. 25, and Sunday, March 3, participating restaurants will offer breakfast, lunch and dinner deals. Bill Kalina photo

HARRISBURG — 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 Pittsburgh Post-Gazette reported that the use tax of about 1.5 percent that began Tuesday 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%.