Tax Breaks for Suds Cut Off

Bad news if you like to raise a few locally-made beers with friends at the local watering hole.

A pair of tax exemptions for local craft breweries has been found to be unconstitutional by a state court, according to a report in the New York Post. For breweries themselves, the ruling means thousands of dollars more in yearly costs. For fans of locally-crafted ales, lagers and other beer styles it can mean up to another dollar or so per pint.

"It's too early to tell how it will effect us," said Santo Romano, at , located at 315 Smith Street betwee Union and President Streets. "I think it's more a question of what will happen to the wholesale distributors. If Thrifty's gets banged out by the brewery, then we'll get banged out by them."

And then, presumably, customers will get banged out by the restaurant, Patch suggested. 

"Yes," he said, laughing. "So come back again soon!"

According to the report, the ruling is the result of a complaint brought by Shelton Brothers, a beer importer based in Belchertown, Mass. In the suit, they claimed the lower prices New Yorkers paid compared to out-of-staters was unfair, and the court sided with them.

As a result New York-based beer makers must pay 14 more cents for every gallon of suds they sell in the state, and 12 more cents for every gallon sold in the city, effective immediately. The only way for businesses to offset the cost will be raising prices for consumers.