brew pub

The town of Fort Frances is lobbying for tax changes affecting microbreweries.

Ontario’s tax laws classify them as industrial due to the presence of brewing equipment on site.

Mayor Andrew Hallikas says they do not justify a higher tax rate.

“What’s not fair to me is that classification applies to the entire premises. Although the part that’s actually doing the brewing could be a very, very small part of the footprint of the business,” says Hallikas.

Hallikas says the entire building, including the restaurant, bar and other public seating areas, falls under the industrial classification, using the same tax rate that would be applied to a sawmill, auto plant or other manufacturing facility.

He says brew pubs are primarily hospitality venues.

Hallikas pressed the idea of a mixed tax rate to officials with the Ministry of Finance while attending the Rural Ontario Municipal Association conference in Toronto.

“We get a lot of people coming to town because of the good name of our local brew pub,” says Hallikas.

“They’re a really essential part of revitalizing downtown cores of small communities. So we want to make sure that they’re treated fairly under the current tax framework.”

Microbreweries received a tax cut last year when the province introduced lower alcohol tax rates.