Philadelphia Becomes Largest U.S. City To Pass Soda Tax

June 17, 2016

The Philadelphia, PA, city council voted 13-4 to approve a 1.5 cent-per-ounce tax on sugary and diet beverages beginning in January. Reuters reports that the city now becomes the largest U.S. city to have such a tax.

Berkeley, CA was the first U.S. town to pass a soda tax in 2014.

In opposition, the American Beverage Association (ABA), which represents Coca-Cola and PepsiCo, said it would take legal action to stop the tax. In a statement on its Website the organization wrote, “The tax passed today is a regressive tax that unfairly singles out beverages – including low- and no-calorie choices.  But most importantly, it is against the law.” The group went on to call the tax “discriminatory” and “highly unpopular” stating that similar tax proposals have been rejected 43 times across the U.S. in the last 8 years.

Philadelphia Mayor Jim Kenney pledged to spend funds from the tax – a projected $91 million in the first year – on public programs. According to The Philadelphia Inquirer, the tax will be levied on distributors. TI could add up to 18 cents to a 12-ounce beverage and will affect sodas, teas, sports drinks, flavored waters, bottled coffees, energy drinks and more.