Update: This story has been updated to reflect that this not a new tax per se, but rather a change in how an existing tax will be applied

Beer drinkers beware. A change in how Pennsylvania taxes craft brews is about to push prices of some beer up just a bit.

Starting July 1, the Pennsylvania Department of Revenue will tax malt and brewed beverage manufacturers who sell retail products out of their establishments.

“Reality is that most manufacturers are going to have to pass this tax along to the beer drinkers,” said J.R. Heaps. “I wish they would’ve left it alone, would have been much better for the customer.”

Heaps has owned and operated South County Brewing Company in Fawn Grove since 2011. The tax was expected to begin in January 2019. A revision issued in October pushed the effective date back to July 1.

The tax will primarily affect manufacturers or holders of a “G” license as designated by the Pennsylvania Liquor and Control Board (PLCB). A “G” license is designated to any brewery. A brewery may also obtain a brewery pub license for onsite consumption and sale (or “GP” license).

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The tax will require GP license holders to tax 6 percent on every retail dollar sold. In other words, a $6 beer today will cost a minimum of $6.36 next year.

Heaps expects he’ll have to pass on nearly $25,000 to customers once this tax takes effect. And while he isn’t happy about the changes, a large part of the frustration for him and other opponents toward the tariff is the unfairness in which license holders are getting taxed.

“What we want is equality across all restaurants [and licenses],” said Heaps.

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Currently, the changes largely affect breweries that sell on-site or have a taproom. The same $6 pint of beer will remained un-taxed at a restaurant based on how the current law is structured.

Craft and independent breweries contributed $6.3 billion towards the Pennsylvania economy last year. With more than 3.7 million gallons to-date, Pennsylvania craft breweries have also produced more beer than any other state during that same time span, according to the National Brewer’s Association.