Soda Tax Slammed With Industry Lawsuit
Ah, so you thought the soda tax saga was over? Think again, Philadelphia! The controversial levy on sugary beverages, which was signed into law by Mayor Jim Kenney in June, is being challenged by a group including beverage lobbyists and retailers. The lawsuit was filed yesterday. It aims to overturn the soda tax law, which is set to take effect in January.
The controversial soda tax is once more in the news as its opponents sue to try and stop its implementation.
Philadelphia became the first big American city to slap a tax on nonalcoholic, sweetened drinks, which include sodas, sports drinks, sweet teas, and the like. The only other city in the U.S. to successfully pass a soda tax is Berkley, California. The tax was initially proposed at three cents per ounce, but City Council wrangling brought it down to 1.5 cents per ounce. This compromise came about because beverage retailers complained that their product would soon become too expensive for many customers to buy it.
Mayor Kenney has been at the forefront of the soda tax helm, championing the levy as a way of raising money for universal pre-kindergarten education, community centers, and libraries. When she was in town campaigning before the Democratic National Convention, Hillary Clinton threw her support behind the measure as well. The law received a lot of positive attention from the medical community as well. With rising rates of obesity and Type 2 diabetes, the over-consumption of sugar by Americans cannot be ignored.
The civil case against the soda tax argues that the levy is not legal because sugary drinks are already subject to state sales tax, and that it is against the law to duplicate taxes. Plaintiffs included in the case are the American Beverage Association, the Pennsylvania Food Merchants Association, beverage distributors and two Philadelphia city residents.
City officials expressed their confidence Wednesday that the tax would be upheld, since it is being charged on distributors and is not a sales tax.
