Beer Busted: New Ruling Means More Expensive Suds

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.

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.

Chris Genoa, the general manager of the , said that while the ruling will negatively impact breweries, he doesn't anticipate having to raise prices at the bar.

"I don’t really get sticker shock when it comes to beers, because we deal with beers that are $300 or $400 a keg," he said, adding that the ruling is just another incentive for would-be local breweries to take their business elsewhere.

"If you look around, there aren’t that many breweries in the city. It’s because of the cost of doing business here is way too high, in general," he said.

"I think it’s just going to hurt craft brewing here. Anyone looking to open a brewery in the city, it’s yet another reason why not to do it."