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Beer tax comes into effect in Pennsylvania




PHILADELPHIA (WPVI) – A new Pennsylvania beer tax just came into effect. The "utility fee" at state breweries came into effect on Tuesday, and additional costs could flow to customers and affect the bottom lines of local businesses.

"There are two percent extra we have to pay for every drop of beer that we donate," said Tom Baker, owner of Bar Hygee in Philadelphia's Fairmount section.

There is technically a 1.5 percent tax on the brewer and in Philadelphia, that's 2 percent.

Right now, Bar Hygee and Brewery Technee in Fairmount are not going to put the extra cost on customers.

"What this tax has done … more sooner than later we think should raise prices to cover this tax," Baker said

At Love City Brewery in Spring Garden, a pint of Love City Warehouse, was a once $ 4, but it will now cost $ 4.40.

"We have had to pay different taxes to the consumer, which raises our prices a little," said co-founder of Love City Brewing Melissa Walter

"It's not a big difference or anything we wanted to make, but unfortunately pay the customer a little more now, "she says.

Breweries are already paying a tax on production to Pennsylvania and the federal government, a sales tax, and those in Philadelphia are paying a liquor tax to the city ̵[ads1]1; and now this ..

"We will continue continue to drink and drink beer, especially local beer, but I worry about the long-term effect on these local breweries, "said customer Brian Safford. "And that's kind of what's next? It's scary for everyone."

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