In an effort to fund citywide pre-kindergarten, Philadelphia Mayor Jim Kenney has proposed a substantial tax on sugar-sweetened beverages. The tax, which would be assessed to distributors beginning in 2017, is three cents per ounce for beverages, and 27 cents per ounce of syrup.
In this legislation, sugar sweetened beverages are defined as a non-alcoholic beverage that contains any type of sugar-based sweetener, or as syrup that contains sugar-based sweetener intended to be mixed into a beverage. Specifically included in the definition are 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 an alcoholic drink. Any beverage including milk would be exempted from this legislation.
PFMA has been active in opposition to this proposed tax. We have issued a press release, had opinion and editorial columns published in local news outlets and are working in coalition with other like-minded organizations to pool resources. PFMA asks that members advocate with their representative on City Council to convey the following:
• This proposal is onerous. Three cents per ounce for a two liter beverage equals $2.02, typically more than the cost of the product.
• This proposal will cost city businesses. Anyone with the means that wants to purchase taxable beverages will do all of their shopping either in surrounding counties or out of state.
• This proposal will cost jobs. A 2010 bottle tax in Baltimore that is only a fraction of the one proposed in Philadelphia directly resulted in the closure of a bottling plant and major independent grocer.
• This proposal will cause customer confusion. The ambiguous definition of what is and is not taxable, often times for products found side-by-side on store shelves, will lead to confused customers at the checkout.
This proposed tax is expected to receive consideration and hearings in May. If you have questions or concerns, or would like to be actively involved in our grassroots advocacy efforts, please contact Alex Baloga (717-760-5918).
In this legislation, sugar sweetened beverages are defined as a non-alcoholic beverage that contains any type of sugar-based sweetener, or as syrup that contains sugar-based sweetener intended to be mixed into a beverage. Specifically included in the definition are 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 an alcoholic drink. Any beverage including milk would be exempted from this legislation.
PFMA has been active in opposition to this proposed tax. We have issued a press release, had opinion and editorial columns published in local news outlets and are working in coalition with other like-minded organizations to pool resources. PFMA asks that members advocate with their representative on City Council to convey the following:
• This proposal is onerous. Three cents per ounce for a two liter beverage equals $2.02, typically more than the cost of the product.
• This proposal will cost city businesses. Anyone with the means that wants to purchase taxable beverages will do all of their shopping either in surrounding counties or out of state.
• This proposal will cost jobs. A 2010 bottle tax in Baltimore that is only a fraction of the one proposed in Philadelphia directly resulted in the closure of a bottling plant and major independent grocer.
• This proposal will cause customer confusion. The ambiguous definition of what is and is not taxable, often times for products found side-by-side on store shelves, will lead to confused customers at the checkout.
This proposed tax is expected to receive consideration and hearings in May. If you have questions or concerns, or would like to be actively involved in our grassroots advocacy efforts, please contact Alex Baloga (717-760-5918).
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