Philadelphia residents have a new incentive to kick their soda habits and opt for water, which comes in the form of a new tax. Beginning Jan. 1, 2017, the city will impose a tax on sugar-sweetened beverages.
So what constitutes a “sugar-sweetened beverage”?
According to Bill No. 160176, a “sugar-sweetened beverage” is any non-alcoholic beverage or non-alcoholic syrup or concentrate that contains any type of sugar-based sweetener such as sucrose, glucose, or high fructose corn syrup; artificial sugar substitutes such as stevia, aspartame, sucralose, neotame, acesulfame potassium, saccharin, and advantame are also included. This non-comprehensive list of ingredients is likely to include most of the staple soda brands, as well as pre-sweetened coffee or tea, non-100%-fruit juice, sport drinks, flavored water and energy drinks.
The city’s “soda” tax will be $0.015 per fluid ounce. To give you an idea of how much extra a person will be paying when they purchase a sugary drink, in addition to the regular price of a beverage, one 12 ounce drink will cost an additional $0.18; a 12-pack of soda will cost an additional $2.16.
Philadelphia is joining Berkeley, CA as the second city in the country to adopt a soda tax but both cities cited different reasons for the implementation of the tax.
Berkeley’s measure was part of a more health conscious goal of discouraging the consumption of sugary beverages, while Philadelphia’s Director of Finance is interested in the revenue the tax can bring to the city.
Rob Dubow, Director of Finance for the City of Philadelphia, testified in front of the City Council Committee that the tax is needed to support the promotion of “education, safety and economic opportunity” for the city. The particular initiatives the director referred to are pre-K expansion, community schools and rebuilding community infrastructure. The city projects annual revenue from the tax to be approximately $91 million.
Continue the discussion on Bloomberg BNA’s State Tax Group on LinkedIn: Is a sugar-sweetened beverage tax a fair way to combat health and revenue issues?
With a free trial to Premier State Tax Library, practitioners have a single trusted resource that provides all of the tools and information they need to develop and implement the right tax strategies.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)