WHAT YOU WANT TO KNOW ABOUT THE PHILADELPHIA BEVERAGE TAX

by PIDCphila
December 19, 2016

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bev-taxThe Philadelphia Beverage Tax will soon go into effect and may impact you or your business. The City of Philadelphia has provided information that business owners and residents should know. 

It is time for the City of Philadelphia to tackle its largest and most crippling problems head-on. Poverty, an inadequate education system, and struggling neighborhoods have held back Philadelphia for too long. To address these challenges, the Philadelphia Beverage Tax will help fund much-needed investments in quality Pre-K, Community Schools and parks, rec centers and libraries.

Starting January 1, 2017, the City of Philadelphia will impose a 1.5-cents-per-ounce tax on the distribution of sweetened beverages (such as regular and diet sodas, teas, and others) as well as syrups and concentrates used to make sweetened drinks.

Most likely you’ll have some questions about the Philadelphia Beverage Tax. Over the next few weeks, the City will be preparing a wide range of materials that focus on answering your questions.

QUICK GUIDE  The Philadelphia Beverage Tax

What distributors need to know.

• Payment of the tax will be the responsibility of distributors of sweetened beverages. Dealers or retailers will only be held financially responsible if they do not buy from a registered distributor.

• You are a distributor if you are a business or entity that distributes wholesale to dealers, who in turn sell to consumers at the retail level.

What does this mean for me?

• As a distributor, you are liable for payment of the Philly Bev Tax on the distribution of sweetened beverages to dealers located in Philadelphia.

• Registration is mandatory and will be available online starting November 2016. Once registered, you will be considered a registered distributor, and your name will be included on a list that dealers can use to find distributors who are registered.

Information about the Philly Bev Tax is also available on PhillyBevTax.com.

In addition to the new beverage tax, there are other taxes that can affect the operation of your business. Join PIDC and the City of Philadelphia for a 3-part series Navigating Through City Taxes. Register today!

Part 1: Understanding the BIRT & Net Profits Tax and Credit Offsets 1/10/17

Part 2: Wage & Earnings Taxes and Job Tax Credits 1/17/17

Part 3: Use & Occupancy vs. Property/Real Estate Tax and Tax Exemptions 1/31/17

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