Beer Busted: Kelso Brewery Feels the Pinch of Tax Exemption Loss

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—such as in Clinton Hill—has been found to be unconstitutional by a state court, according to 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.

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 breweries like Kelso will have to 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 to raise prices for consumers, according to the report. Which means customers are likely to pay more for a pint of Kelso's Nut Brown Ale, Pilsner and the Recessionator—a Doppel Bock brew .