In Harrisburg, our efforts to repeal the onerous sugar-sweetened beverage tax continue to pick up steam. House Bill 2241 was reported from the House Commerce Committee on May 1. The measure would also invalidate any current fees or taxes levied by local governments, including the Sugar-sweetened Beverage Tax in Philadelphia. We expect the bill to be voted on by the whole House in early June. PFMA sent an action alert to all members asking them to contact legislators in support. We encourage members who have not contacted their legislators to please consider doing so as soon as possible.
Using Philadelphia as an example, the Sugar-sweetened Beverage Tax has financially devastated neighborhood businesses, especially grocery stores, affecting not just the business owners, but employees, their families, and customers as well. A study done by Oxford Economics using independent market research data found that beverage sales by grocery stores fell 24% in the city since the tax went into effect, while equivalent sales in the suburbs increased by 14%. As a direct result of the loss of revenue, these businesses have reduced their workforces by nearly 1,200 jobs, accounting for almost $54 million in lost labor earnings and $80 million in local economic losses.
At the same time, the Pennsylvania Supreme Court heard argument on the constitutionality of the tax. Tax opponents, including PFMA, argued that the tax unlawfully duplicates the state sales tax on the same items. The justices did not offer any indication when they would announce their decision.
As always, PFMA staff will continue to monitor legislation introduced and considered by the General Assembly. PFMA members are encouraged to contact us with questions or concerns about potential ordinances or other governmental action.
Using Philadelphia as an example, the Sugar-sweetened Beverage Tax has financially devastated neighborhood businesses, especially grocery stores, affecting not just the business owners, but employees, their families, and customers as well. A study done by Oxford Economics using independent market research data found that beverage sales by grocery stores fell 24% in the city since the tax went into effect, while equivalent sales in the suburbs increased by 14%. As a direct result of the loss of revenue, these businesses have reduced their workforces by nearly 1,200 jobs, accounting for almost $54 million in lost labor earnings and $80 million in local economic losses.
At the same time, the Pennsylvania Supreme Court heard argument on the constitutionality of the tax. Tax opponents, including PFMA, argued that the tax unlawfully duplicates the state sales tax on the same items. The justices did not offer any indication when they would announce their decision.
As always, PFMA staff will continue to monitor legislation introduced and considered by the General Assembly. PFMA members are encouraged to contact us with questions or concerns about potential ordinances or other governmental action.
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