The House Liquor Control Committee held Tuesday a public hearing at Spoonwood Brewery in Pittsburgh to discuss a new “taproom tax” that’s set to take effect July 1.
The state Department of Revenue’s recent tax bulletin indicated that breweries that bypass wholesalers and sell beer directly to consumers in their tasting rooms and retail storefronts would be required to issue the 6 percent state sales tax at the point of sale. Some brewery owners have argued that the tax should be applied at the wholesale level instead.
“Pennsylvania has a rich and diverse brewing history and our local breweries are an asset to our state’s economy – supporting hundreds of communities and contributing millions in tax revenue every year,” Rep. Natalie Mihalek (R-Allegheny/Washington) said. “As lawmakers, we should be doing everything in our power to not be a hurdle that they must jump over in order to be successful.”
Representatives from the Pennsylvania Department of Revenue, Brewers of PA, the Pennsylvania Restaurant and Lodging Association and the Pennsylvania Licensed Beverage and Tavern Association attended to testify before the committee.
“Pennsylvania breweries are a significant source of economic growth and tax revenues,” Adam Harris, deputy executive director of Brewers of PA, said. “If the Department of Revenue’s new sales tax bulletin is instituted, it will have a significant effect on the brewing business.”