The Philadelphia Department of Revenue released amended regulations for the Philadelphia Beverage Tax following an October 13 public hearing and a written comment period. According to the department, the amendments should improve clarity and ease of compliance with the new tax. They took effect on November 10.
Distributors, defined as any person who sells sweetened beverages to a dealer, are required to pay the tax. A dealer is defined as a person who sells sweetened beverages at retail. Dealers are required to buy the products from a registered distributor. If they do not purchase the products from a registered distributor, they must register and pay the tax directly to the City of Philadelphia. Dealers are also required to notify distributors that sweetened beverages sold to them are subject to the tax. Even if the distributor is located outside of Philadelphia, they still must file with the city to become a registered distributor.
The Department of Revenue declined requests by PFMA and other commenters to produce a list of applicable products, due to the time and effort involved in maintaining such a large list. The Department has agreed to establish a submission line where retailers and distributors can submit questionable products, and publicize their interpretation.
The 1.5 cents per ounce tax starts on January 1, 2017. PFMA joined a lawsuit against the City of Philadelphia last month that challenges the city’s authority to implement a tax on beverages. Common Pleas Court Judge Gary S. Glazer is reviewing the lawsuit and vowed to make a ruling before the January 1 implementation. For more information on the tax, visit www.phillybevtax.com.
Distributors, defined as any person who sells sweetened beverages to a dealer, are required to pay the tax. A dealer is defined as a person who sells sweetened beverages at retail. Dealers are required to buy the products from a registered distributor. If they do not purchase the products from a registered distributor, they must register and pay the tax directly to the City of Philadelphia. Dealers are also required to notify distributors that sweetened beverages sold to them are subject to the tax. Even if the distributor is located outside of Philadelphia, they still must file with the city to become a registered distributor.
The Department of Revenue declined requests by PFMA and other commenters to produce a list of applicable products, due to the time and effort involved in maintaining such a large list. The Department has agreed to establish a submission line where retailers and distributors can submit questionable products, and publicize their interpretation.
The 1.5 cents per ounce tax starts on January 1, 2017. PFMA joined a lawsuit against the City of Philadelphia last month that challenges the city’s authority to implement a tax on beverages. Common Pleas Court Judge Gary S. Glazer is reviewing the lawsuit and vowed to make a ruling before the January 1 implementation. For more information on the tax, visit www.phillybevtax.com.
RSS Feed