Collecting Pennsylvania use tax at breweries
Starting October 1, 2019, Act 13 of 2019 requires manufacturers of malt or brewed beverages to pay use tax on all malt or brewed beverages sold directly to consumers. The use tax base is 25 percent of the retail purchase price of the malt or brewed beverages. This includes purchases made for on-premises consumption and to-go sales.
Here’s an example with a $5 pint: 25% of $5 is $1.25. That means the manufacturer pays the 6% Pennsylvania use tax on $1.25, which is equal to 7.5 cents. In Allegheny County, the use tax is 7%, which is equal to 8.8 cents. In Philadelphia County, the use tax is 8%, which is equal to 10 cents.
As noted above, this law takes effect October 1, 2019. The Department of Revenue will administer and enforce the law after that date. No changes for the taxpayer are necessary until that time. Refer to Sales and Use Tax Bulletin 2019-02 for further information and detailed examples of how the law applies.
If you are not already registered for a Pennsylvania sales tax license, visit www.pa100.state.pa.us to fill out the PA-100 Pennsylvania Enterprise Registration Form.