The Pennsylvania Food Merchants Association (PFMA) is among several plaintiffs who have filed suit against the City of Philadelphia challenging its authority to implement the city’s new tax on beverages. The suit revolves around three legal arguments:
1. Pennsylvania law prohibits a local government from taxing the same subject or property as an existing state tax. Pennsylvania already has a soft drink tax.
2. SNAP beneficiaries are exempt from tax on purchases made with SNAP funds.
3. The Pennsylvania Constitution requires uniformity of taxation. Because this tax is based on volume, not value, different and regressive tax rates are imposed.
The lawsuit was filed in Common Pleas Court, but PFMA and the plaintiffs are asking that the state Supreme Court take up the case immediately. The plaintiffs have petitioned for an injunction to stop the city from collecting the tax, which is set to go into effect January 1, 2017. There is no timetable yet for the court to hear this challenge.
1. Pennsylvania law prohibits a local government from taxing the same subject or property as an existing state tax. Pennsylvania already has a soft drink tax.
2. SNAP beneficiaries are exempt from tax on purchases made with SNAP funds.
3. The Pennsylvania Constitution requires uniformity of taxation. Because this tax is based on volume, not value, different and regressive tax rates are imposed.
The lawsuit was filed in Common Pleas Court, but PFMA and the plaintiffs are asking that the state Supreme Court take up the case immediately. The plaintiffs have petitioned for an injunction to stop the city from collecting the tax, which is set to go into effect January 1, 2017. There is no timetable yet for the court to hear this challenge.
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