Soda Tax Moves Ahead

In a prior newsletter, we reported on the City of Philadelphia’s intentions to tax sugary and sweetened drinks. While the beverage industry and retailers sued saying the tax is unconstitutional, a judge recently dismissed the legal effort, clearing the way for the 15 cent per ounce tax to take effect January 1, 2017.

While Philadelphia will become the first major U.S. city to pass such a tax, several other governmental entities, including the City of San Francisco and Cook County, Illinois, are taking similar action. In Cook County, which includes the City of Chicago, the tax will go into effect on July 1, 2017 and will add 68 cents to the cost of a 2-liter bottle of soda and a penny per ounce to all sugary fountain drinks.

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