The state House of Representatives has approved tax code legislation encompassing an initiative authored by Rep. Natalie Mihalek, R-Upper St. Clair, to address Pennsylvania’s “taproom tax.”
Mihalek’s legislation was drafted in response to a Department of Revenue tax bulletin that indicated 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.
The requirement had been scheduled to go into effect July 1.
House Bill 1549 creates a standard formula to apply the 6 percent tax at 25 percent of the retail value. Mihalek’s proposal provides the parity for which industry stakeholders have argued.
“I am grateful to my colleagues in the House and Senate for passing this important legislation as part of the tax code included in this year’s state budget,” Mihalek said. “As lawmakers, we should not be picking winners and losers in the private sector, and we should not create an unlevel playing field.”
Mihalek’s legislation was passed as part of the larger Tax Code, which was approved by Gov. Tom Wolf as part of the 2019-20 state budget.