PBS39 News Reports
BREWPUBS
Clip: Season 2018 | 4m 56sVideo has Closed Captions
The new brewpub tax has been pushed back to June due to opposition from brewers.
BREWPUBS: Craft beermakers aren't toasting a plan by the state to collect sales tax on suds sold at breweries and tasting rooms. Consumer costs will go up. The new tax was supposed to start Jan. 1 but has been pushed back to June due to opposition from brewers. MEGAN
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PBS39 News Reports is a local public television program presented by PBS39
PBS39 News Reports
BREWPUBS
Clip: Season 2018 | 4m 56sVideo has Closed Captions
BREWPUBS: Craft beermakers aren't toasting a plan by the state to collect sales tax on suds sold at breweries and tasting rooms. Consumer costs will go up. The new tax was supposed to start Jan. 1 but has been pushed back to June due to opposition from brewers. MEGAN
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PENNSYLVANIA ARE UNITING AGAINST A NEW SALES TAX TH SAY IS JUST BAD FOR BUSINE I STOPPED BY A BREWERY IN EASTERN TO LEARN HOW THIS IMPACT THE WALLETS OF CRAF BEER ENTHUSIAST.
>> Reporter: -- WE HAVE HI IN ALLENTOWN, LITTLE PLACE LIKE BOND BREWING.
A GREAT PLACE IN BETHLEHEM >> Reporter: EVERY YEAR PENNSYLVANIA PRODUCES OVER BILLION BOTTLES OF YEAR ACCORDING TO THE BREWERS ASSOCIATION, ENOUGH TO GET U.S.
POPULATION DRUG TWICE BUT HUNDREDS OF OWNERS ACR THE COMMONWEALTH ARE NOT SOAKING UP THE IDEA OF A N SALES TAX ON THE PINES THE SERVE UP A BREWPUBS.
>> MY FIRST REACTION WAS I GOING TO CUT INTO THE PROF AT OUR TAP ROOMS.
THIS TAPROOM HER IS ROUGHL 100% OF OUR BUSINESS FOR T YEAR.
SO THAT WILL CUT SIGNIFICA INTO THE BUSINESS.
MODEL THAT WE HAVE.
>> Reporter: BREWERIES SEL THEIR PRODUCTS VIA CASES A CAKES ATTACKS UPON SO, BUT PINES HAVE NOT BEEN TAXED THE 2015 STATE LAW GRANTED BREWERS THE RIGHT TO SELL ON SITE.
THAT LED TO TAPROOM OPENIN ACROSS THE STATE.
>> WE HAVE NO PROBLEM PAYI SALES TAX WHATSOEVER, WE J WANT TO PAY THE SAME SALES THAT WHOLESALERS ARE CHARG TWO BARS, ETC.
>> A BEER WHOLESALER DOESN SELL IT TO A GROCERY STORE THE PINE.
IT SELLS IT BY PINT SELLS A OR CASE.
THERE IS A WHOLESALE PRICE THOSE TYPES OF ITEMS.
SO SALES TAX, LET'S TAKE F EXAMPLE A RESTAURANT BAR, DOLLARS.
SO WHAT IS THE NEW DEPARTM OF REVENUE REINTERPRETATIO RULING ON SALES TAX, WHATE YOU WANT TO CALL IT, THEY IT A BULLETIN.
WHAT DOES THAT DO TO SOME SOMEONE LIKE CHRIS LAMB BE THEY SAY NO KNOW, YOU DON' CHARGE OF THE WHOLESALE RA YOU CHARGE ON THE ACTUAL S TO THE CONSUMER.
SO THAT SAME ONE OF THE $5 IMAGINE YOU GET 120 PINTS OF THAT TIMES FIVE OR SIX DOLLARS A PINT TIMES 6%, S THAT SAME KEG THAT A RESTA OR GROCERY STORE IS PAYING DOLLARS ON, THEY ARE GOING SAY, YOU HAVE TO PAY $50 O THAT, FIVE TIMES THAT.
>> Reporter: LAST YEAR THE REVENUE DEPARTMENT ISSUED BULLETIN TO BREWERIES SAYI WANTED THAT TO CHARGE A 6% SALES TAX IN 2019 ON TAPRO PRODUCTS INCLUDING PINTS, PACKS AND TRAILERS.
IF IT GOES INTO EFFECT, A DOLLAR CRAFT BEER LIKE THI COULD END UP COSTING YOU A $.30 MORE.
CHRIS LAMP HE SAYS HE DOES WANT TO PASS ON THE COST T CUSTOMERS AND IS WORRIED O BARS WILL BE ABLE TO SELL BEER AT LOWER PRICES.
BUT IF I PASS IT ON TO THE CONSUMER, THAT MEANS AT TH DOWN THE STREET CAN SELL M PRODUCT CHEAPER THAN I CAN MY OWN TAPROOM.
>> Reporter: REVENUE OFFIC SAY THE TAX IS PART OF THE INTERPRETATION OF 2016 STA LIQUOR REFORM LAWS WHICH ALLOWED FOR BEER AND WINE SOLD AT GROCERY STORES AND BREWERIES MORE BREWER -- L TO DO THINGS LIKE SELL TO DISTILLERIES AND WONDERS.
BUT TRAN40 SAY THE INTERPRETATION IS WELL, FIGHTING A LETTER FROM THE REVENUE DEPARTMENT MAILED THEM AND SHOWED TO PBS39 T DEFINES THE TAX REFORM COD RELATION TO BREWPUBS AS A TRAVERTINE WOULD NOT COLLE SALES TAX ON IT SALE OF MA BEVERAGES TO ITS CUSTOMERS BUY ON PREMISES OR ON SIX AND CASES TO GO.
>> IT IS CHANGE SINCE THIS LETTER?
NOTHING HAS CHANGED.
THE SALES TAX LAW HASN'T CHANGED.
OUR ABILITY TO SELL PINES BREWERY HAS A CHANGE.
THAT WAS ENACTED BACK IN 2 >> Reporter: HE IS CONCERN THE TAX COULD RESULT IN TH SHUTDOWN A SMALL BREWERIES >> WE ARE 45 EMPLOYEES, B THROUGHOUT THE STATE WE ST TALKING ABOUT TENS OF THOU OF JOBS THAT ARE CREATED B BREWERIES IN PENNSYLVANIA, TO MENTION THE COMMUNITY REVITALIZATION THAT IS HAP AROUND TRANSIT THE.
>> Reporter: THE TAX IS SE TAKE EFFECT ON GENERAL FIR BUT IS BEEN SUCCESSFULLY POSTPONED DUE TO PUSHBACK BREWERS OF PENNSYLVANIA, W CHRIS LAMP HE SERVES AS PRESIDENT.
THE SALES TAX ON BREWPUB C STARTS JULY 1 THIS YEAR.
THE BREWERS ASSOCIATION IS HOPING TO STOP IT IN ITS T BEFORE IT EVER TAKES PLACE REPORTING IN EASTON PENNSYLVANIA, I AM MEGAN F FOR PBS 39 NEWS TONIGHT.
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