Judge Dismisses Lawsuit Against Kenney’s Soda Tax

This time, Big Soda doesn’t win. That’s the message that was sent Monday by Philadelphia Court of Commons Pleas Judge Gary S. Glazer, who shot down a lawsuit from the American Beverage Association and local retailers and distributors that sought to repeal the City of Philadelphia’s planned “soda tax,” which is set to take effect on January 1st. The tax, which was championed and signed into law by Mayor Jim Kenney.

Mayor Jim Kenney’s soda tax will proceed as expected, given the fact that a lawsuit aiming to block it was thwarted.

The controversial tax enforces a levy of 1.5 cents per ounce on all sweetened drinks – sodas, sports drinks, sweet teas, and any other drink that contains added sugar. The ABA argued in its lawsuit that the tax was unconstitutional, because it did not distribute the tax fairly. An example cited in BIlly Penn was that a venti-sized, $5 drink from Starbucks would be taxed at a lower rate than a $1.50 2-liter bottle of soda. The tax penalizes high-volume, low-cost drinks, allegedly. Furthermore, according to Forbes, “the plaintiffs alleged that the state already imposed a 6% sales tax on many of the same soft drinks that would also be affected by the SBT and that the SBT violated a federal mandate targeting Supplemental Nutrition Assistance (SNAP) funds: the SBT could, according to the original complaint, affect the state’s ability to collect and distribute SNAP funds.”

It’s believed that the ABA will appeal Judge Glazer’s decision. In the meantime, Mayor Kenney implores the soda tax’s opponents to stop fighting it, given that the proceeds from the tax will go to worthy causes. “I urge the soda industry to accept the Judge’s ruling and do the right thing for the children of Philadelphia, many of whom struggle in the chilling grip of pervasive poverty. The industry has chosen not to challenge beverage taxes in other municipalities and there is no reason to continue pursuing it here. Regardless of their decision, the City will not stop pursuing what those kids need most – quality pre-K, Community Schools, and better parks, libraries and rec centers.”