The Allegheny County drink tax is a 7% tax on alcoholic beverages sold by bars, restaurants, clubs, caterers, and other venues licensed by the Pennsylvania Liquor Control Board. You pay it on drinks bought at those establishments, whether you drink on the premises or take the container home. You do not pay it on alcohol bought at a Fine Wine & Good Spirits store or a beer distributor.1Allegheny County Treasurer Office. Alcoholic Beverage Tax Revenue from the tax funds Pittsburgh Regional Transit.2Allegheny County Treasurer. Allegheny County Alcoholic Beverage Tax Official Rules and Regulations
What the 7% Applies To
The tax hits every retail sale of alcohol by a PLCB-licensed business in the county. Mixed drinks at a bar, a glass of wine with dinner, a draft beer at a brewery taproom, a bottle of wine a restaurant sells you to carry out — all 7%.1Allegheny County Treasurer Office. Alcoholic Beverage Tax
The county ordinance defines the taxable categories broadly. “Malt and brewed beverages” covers beer, lager, ale, porter, and similar fermented drinks. “Liquor” covers distilled spirits and wine.3County of Allegheny, PA. Allegheny County Code – Article 808A Alcoholic Beverage Taxation If a licensed venue sells it and it has alcohol in it, assume the tax applies.
What Is Exempt
Three things are not subject to the drink tax:
- Purchases at Pennsylvania state liquor stores (Fine Wine & Good Spirits).
- Purchases at licensed beer distributors — cases and kegs taken home are not taxed.
- Complimentary drinks. If the establishment doesn’t charge for the alcohol, there’s no retail sale and no tax.1Allegheny County Treasurer Office. Alcoholic Beverage Tax
Service charges added to a bar bill are also excluded from the taxable amount.2Allegheny County Treasurer. Allegheny County Alcoholic Beverage Tax Official Rules and Regulations The practical line is simple: licensed venue selling you a drink, you pay. State store or distributor, you don’t.
Weddings, Fundraisers, and Private Events
Whether the tax applies to a private event depends entirely on who’s pouring. If a licensed restaurant, hotel, or caterer provides the alcohol, the 7% applies to the whole bar tab. That’s true for an open bar billed to the host and for a cash bar where guests pay for their own drinks.2Allegheny County Treasurer. Allegheny County Alcoholic Beverage Tax Official Rules and Regulations
If you rent an unlicensed space and bring your own alcohol, no tax is owed. The county’s own regulations give the example of booking a fire hall for a wedding and supplying your own beverages. A church bingo night that gives away beer falls into the same bucket: no liquor license and no sale means nothing to tax.2Allegheny County Treasurer. Allegheny County Alcoholic Beverage Tax Official Rules and Regulations
How It Shows Up on Your Bill
The 7% is calculated on the price of the alcoholic beverage itself.3County of Allegheny, PA. Allegheny County Code – Article 808A Alcoholic Beverage Taxation It doesn’t stack on top of Pennsylvania’s 6% state sales tax; both are figured from the same base. On a $50 drink tab, the county tax is $3.50, and state sales tax is calculated separately on that same $50.
Some establishments break the drink tax out as its own line on the receipt. Others fold it into their listed menu prices, in which case the venue should post a sign noting that tax is included. Either way, the consumer is the one paying it; the business is just the collector.
If You Run a Licensed Business
Every PLCB-licensed establishment operating in Allegheny County has to collect the tax, including restaurants, bars, hotels, private clubs, and social clubs with liquor permits.3County of Allegheny, PA. Allegheny County Code – Article 808A Alcoholic Beverage Taxation Before collecting, the business registers with the Allegheny County Treasurer’s Office using the registration form on the Treasurer’s website, which assigns an account number used on every return.1Allegheny County Treasurer Office. Alcoholic Beverage Tax
Returns are filed monthly. The Alcoholic Beverage Tax Return and payment are due by the 25th of the month following the reporting period, so January collections are due February 25.1Allegheny County Treasurer Office. Alcoholic Beverage Tax The return starts with total gross sales, subtracts food, non-alcoholic beverages, and merchandise, and applies 7% to what’s left. The account number has to appear on every filing.4Allegheny County Treasurer. Allegheny County Alcoholic Beverage Tax Statement Filing is available online through the county’s e-payment portal or by mail with a check.5Allegheny County Treasurer Office. Drink Tax E-Payments
Late filings carry a 1% monthly penalty on the unpaid tax plus 0.5% monthly interest, both running from the original due date.6County of Allegheny, PA. Allegheny County Code – Article 808A Alcoholic Beverage Taxation – Section: Penalties and Interest Beyond the money, the county can file a civil action in the Court of Common Pleas, obtain a judgment, and pursue the vendor’s assets. Criminal prosecution with fines and possible imprisonment is also authorized for continuing nonpayment.1Allegheny County Treasurer Office. Alcoholic Beverage Tax
Where the Money Goes
All drink tax revenue goes to Pittsburgh Regional Transit, formerly the Port Authority of Allegheny County. The tax was created to produce the local match the county needs to draw down state transit subsidies, and without that local contribution the county would lose access to a larger pool of state funding for bus and light rail service.2Allegheny County Treasurer. Allegheny County Alcoholic Beverage Tax Official Rules and Regulations The tax started at 10% in December 2007 and was reduced to 7% in the 2009 budget after collections ran well ahead of projections.