Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
By Tripp Baltz
Voters in Boulder, Colo. will decide in November whether to keep excess revenue generated by a tax on sugar-sweetened beverages.
The Boulder City Council on Aug. 14 unanimously approved an ordinance asking voters whether the city can spend extra revenue raised by the 2-cents per ounce tax on distribution. An initiative committee estimated that the tax, which took effect July 1, 2017, would raise about $3.8 million. But actual projections peg the amount at about $5.2 million.
Under Colorado’s 1992 tax-and-spending limitation amendment, the Taxpayer Bill of Rights, only voters can approve tax increases, and annual state and local government spending growth is limited to the rate of inflation plus population growth. Revenue collected in excess of the TABOR limit must be returned to taxpayers, unless they say otherwise. Revenue collected by ballot measures that exceed projected revenue estimates also must be returned.
The ballot measure would cover excess revenue dating back to the soda tax’s effective date, and in every year thereafter. Revenue from the tax goes to fund health equity programs, including programs for people with chronic illnesses often linked to sugar consumption.
The soda tax movement has mostly fizzled nationally, although it has had some notable victories in cities. Philadelphia’s soda tax was recently validated as legal by the Pennsylvania Supreme Court. The American Beverage Association had challenged the 1.5-cents-per-ounce tax.
The soda tax movement launched in Berkeley, Calif., in 2014, and so far only cities, not states, have enacted similar taxes. Cook County, Ill., which includes Chicago, repealed its soda tax in October amid controversy. Legislative efforts in Michigan, Arizona, and Washington state have stalled.
The soda industry won a 12-year ban on California state or local soda taxes in exchange for dropping a November ballot measure that would have made it more difficult to enact a broad range of taxes.
Former New York Mayor Michael Bloomberg, a long-time critic of the health effects of sweetened beverages, favors Philadelphia’s soda tax and has paid for advertising that supports it and similar taxes. Bloomberg Tax is operated by entities controlled by Michael Bloomberg.
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 firstname.lastname@example.org.
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 email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)