PITTSBURGH (KDKA) — Starting Tuesday, craft breweries in Pennsylvania will pay a new tax.
The state will begin imposing a “use tax” on beer that is sold directly to consumers at breweries. The tax is different than a sales tax and is not on all beer.READ MORE: 2 Tigers At Pittsburgh Zoo Test Positive For COVID-19
It will be 1.75 percent in Allegheny County and 1.50 percent elsewhere.
The tax is calculated by multiplying 25 percent of all retail sales by the local sales tax.READ MORE: Kenny Pickett Wins Prestigious Johnny Unitas Golden Arm Award
Many businesses say they have no choice but to pass along the hike to customers.
“I don’t know if it’s going to be right away, but we estimate about $18,000 a year it’s going to cost us,” Phillip Moran of Church Brew Works said.
The Department of Revenue is not allowing the tax to appear on receipts.MORE NEWS: PTL Links: Dec. 7, 2021
“These little guys, it’s going to put on another charge. .. It’s just not fair,” Moran said.