Pennsylvania Commonwealth Court Finds Carbonated Mineral Water Not Exempt From Sales Tax

The Pennsylvania Commonwealth Court affirmed the Board of Finance and Revenue’s decision denying a petition for refund of sales tax paid on purchases of Perrier non-flavored mineral water. The taxpayer argued that Perrier is: 1) a natural mineral water and is exempt from sales tax; and 2) does not qualify for sales tax as a “soft drink” because it is not artificially carbonated. The Commonwealth Court concluded that Perrier is “carbonated water” and thus subject to sales taxation as a “soft drink” pursuant to Sections 201(a), 202(a), and 204(29)(i) of the Tax Reform Code and affirmed the Board’s decision. [Montgomery ...