• As previously covered on this blog, Philadelphia enacted a 1.5-cent-per-ounce tax on distributors of sweetened beverages (including soda and diet soda, non-100% fruit drinks; sports drinks; flavored water; energy drinks; pre-sweetened coffee or tea; and non-alcoholic beverages intended to be mixed into alcoholic drinks) as a revenue generating measure to fund local health and education needs. The tax took effect on January 1, 2017, but has faced legal challenges, most notably by the American Beverage Association (ABA) (see previous blog coverage here).
  • On May 1, 2018, a Pennsylvania legislative committee signed off on a measure that would invalidate the tax on sweetened beverages and preempt other municipalities in the state from enacting similar measures. The bill, which was approved by the Pennsylvania House Commerce Committee on a 17-9 vote, would prevent local governments from placing fees, surcharges, or taxes on food, beverages, and food and beverage containers.
  • Alex Baloga, head of the Pennsylvania Food Merchants Association, hailed the bill, saying it will “protect all Pennsylvanians from new taxes on food and beverages, including hardworking families who can’t afford more expensive grocery bills, small businesses that would lose customers and labor groups whose members could see their jobs cut.” However, this bill is just one aspect of the fight over the sweetened beverage tax. Currently, the Pennsylvania Supreme Court is weighing whether the tax is an improper duplication of the state’s sales tax. And Pennsylvania Governor Tom Wolf has already vetoed one bill passed by the General Assembly that would prevent municipalities from enacting taxes on food and beverage containers, like plastic bags.
  • Sweetened beverage taxes are relatively new initiatives, with Berkeley, California passing the first beverage tax in November 2014. And although it is well established that excess sugar consumption is inadvisable, it remains to be seen whether such taxes will be able to strike a balance between public health and consumer choice.