In another installment to our blogs on sugary drink legislation, also known as the “soda tax”, Mayor Kenney of Philadelphia introduced his proposal of a Sugary Drinks Tax in his Budget Address on March 3, 2016. This tax would be at three cents per ounce and would be effective January 1, 2017 and, says the press, would be levied on distributors, though clearly the increased price would be passed on to consumers. The budget proposal assumes that this will bring in $48 million in revenue to the City of Philadelphia which is tagged to be used for pension investment, pre-k community schools, investments in community infrastructure and energy efficiency.
This legislation is likely to be similar to that proposed in New York (and defeated in the courts) and perhaps failed legislation proposed by former Philadelphia Mayor Nutter as well. The beverage industry, including the American Beverage Association, and local unions are lining up to fight the proposal. But this has only just begun…