A recent Pennsylvania sales tax case involving the purchase of Perrier from Sheetz convenience stores has highlighted the complexities of sales tax on food and beverages. Jennifer Montgomery purchased two bottles of Perrier from Sheetz, and the sales tax was collected both times. Montgomery filed refund petitions seeking a refund of the sales tax, arguing that Perrier should be exempt from tax as natural mineral water. The Pennsylvania Department of Revenue denied her petitions, stating that Perrier is carbonated water and subject to sales tax.
Under Pennsylvania tax law, a six percent sales tax is imposed on the retail sale of tangible personal property. Soft drinks are subject to sales tax, and the Department’s informal guidance clarifies that soft drinks include carbonated beverages. Montgomery argued that Perrier should be exempt from sales tax as it is natural mineral water, not artificially carbonated water. The Commonwealth countered that Perrier falls within the definition of soft drinks and is subject to sales tax as carbonated water.
The Court analyzed the scientific and geographical origins of Perrier, concluding that it is sourced from non-flavored mineral water, naturally carbonated from underground springs near Provence, France. The carbonation process used for Perrier is the same as that used for soft drinks like Coca-Cola and Pepsi. The Court determined that when a consumer purchases Perrier, the water has carbonation, making it carbonated water subject to sales tax as a soft drink.
The Court rejected Montgomery’s argument that only artificially carbonated water should be taxed as a soft drink, as the definition in the Pennsylvania tax law contains no qualifications for natural or artificial carbonation. Judge Wolf ruled that Perrier is carbonated water and subject to sales tax under the plain language of the law. This case highlights the importance of understanding the nuances of sales tax laws, as something as simple as carbonation can determine the taxability of a product.
In conclusion, the Court ruled that Perrier is subject to sales tax as a soft drink in Pennsylvania. This case serves as a reminder to consumers and retailers alike to be aware of the intricacies of sales tax laws, as even seemingly small details like carbonation can impact the taxability of a product. The decision in the case of Jennifer Montgomery v. Commonwealth of Pennsylvania clarifies the tax status of Perrier and provides guidance for future cases involving the taxation of food and beverages.
