This is the archive of CPA Now blogs posted on the PICPA website through April 30, 2025. Want more recent blogs?
What Distributors and Retailers Need to Know about the Philly Beverage Tax
The Philadelphia beverage tax (the sweet drinks tax) became effective Jan. 1, 2017. The following overview provides steps for retailers and distributors to be compliant.
By Rebecca Lopez Kriss
The Philadelphia beverage tax (PBT) became effective starting Jan. 1, 2017, so dealers and distributors of sweetened beverages – as well as their tax professionals – should be ready. The following overview provides steps to be compliant.
What Is the PBT?
On Jan. 1, 2017, the City of Philadelphia began imposing a 1.5-cents-per-ounce tax on the distribution of sweetened beverages and the syrups and concentrates used to make sweetened beverages. A comprehensive list of affected beverages is at www.phillybevtax.com.
Why the PBT?
By complying, distributors and dealers are helping the Philadelphia tackle some its largest problems head on, as revenues from the PBT will be used to fund much-needed investments in pre-K, community schools, recreation centers, libraries, and parks.
Distributor Requirements
Wholesale distributors of sweetened beverages to dealers operating in Philadelphia were required to register with the City for the tax by Dec. 31, 2016. Distributors who have not yet done so should register immediately at www.phillybevtax.com. The first tax return and payment is due Feb. 20, 2017, and then on the 20th of each month following.
Dealer (Retailer) Requirements
Sellers of sweetened beverages at the retail level need to buy sweetened beverages from distributors registered for the tax. If dealers buy from nonregistered distributors, they are responsible for paying the tax themselves. Dealers can find a list of registered distributors at www.phillybevtax.com.
It is important that retailers let their distributors know that they operate a business in Philadelphia as soon as possible. Dealers can use their PA Sales Tax Exemption Certificate or the form found at www.phillybevtax.com.
More information on all the above, including the definition of sweetened beverages, is available at www.phillybevtax.com.
Rebecca Lopez Kriss is a senior policy analyst and the director of taxpayer and water customer engagement for the City of Philadelphia Department of Revenue.
