New Bill Could Mark Death Knell of Philly’s Soda Tax

Philadelphia’s soda tax has been controversial since its inception. It was created in 2016 and made legal in January of last year, placing a 1.5-cent-per-ounce tax on not just sodas, but diet sodas, sweet teas and coffee drinks, flavored or carbonated water, and juices that are not 100% natural. From the get-go, opponents have argued that the tax, which was ostensibly put into effect to fund Philadelphia’s pre-kindergarten programs and public works, has done nothing but disenfranchise owners of convenience stores and small grocery stores, whose bottoms lines are hurt by the tax.

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Could this mark the end of Philadelphia’s soda tax?

Since the tax was passed, opponents – funded primarily by American beverage lobbyists – have thrown challenge after challenge at the soda tax to try and undermine its legality. To date, the tax has held up to every obstacle.

Now, state Rep. Mark Mustio has introduced a bill that would put an end to the soda tax for once and for all. The bill prohibits the city of Philadelphia from taxing food and/or beverage purchases, which would put the kibosh on the soda tax retroactively. Even as a young bill, it has already received a good deal of bipartisan support.

“While there is no question that the goals of funding pre-K and rebuilding city assets in Philadelphia are laudable and should be pursued, it is my belief that the beverage tax levy has proven to be an extreme burden on retailers, especially grocery and convenience stores in the city,” the Allegheny County Republican wrote in his memorandum to fellow representatives late last year,” says Philadelphia Magazine. Mustio also referred to the soda tax as a “revenue grab” and stated that, in his opinion, Philadelphians would be happy to know that their grocery bill was not left to the “whims” of lawmakers.
A spokesperson for Mayor Jim Kenney, who has continuously endorsed the soda tax, dismissed the bill by saying that the mayor had not yet reviewed it, but that it was doubtlessly yet another ploy made by the beverage industry to try and preserve their bottom line.