Philadelphia became the first major US city with a soda tax on Thursday, despite a multimillion-dollar campaign by the beverage industry to block it.
The Philadelphia City Council gave final approval to a US$0.015-per-ounce (28.3g) tax on sugary and diet beverages.
Only Berkeley, California, had a similar law.
Photo: AP
Soda tax proposals have failed in more than 30 US cities and states in recent years. Such plans are typically criticized as disproportionately affecting the poor, who are more likely to consume sugary drinks.
Philadelphia Mayor Jim Kenney sold the council on the idea with a plan to spend most of the estimated US$90 million in new tax revenue next year to pay for prekindergarten, community schools and recreation centers.
“Thanks to the tireless advocacy of educators, parents, rec center volunteers and so many others, Philadelphia made a historic investment in our neighborhoods and in our education system today,” Kenney said after the vote.
The regulation, which passed 13-4, was a hard-fought win for the city. The soda industry spent millions of dollars in advertising against the proposal, arguing that the tax would be costly to consumers.
The plan also attracted national attention and dollars, with former New York mayor Michael Bloomberg and Texas billionaires John and Laura Arnold, advocates for less consumption of sugary drinks, funding ads in support.
After the vote, beverage bottling businessman Harold Honickman vowed to fight the tax in court.
“I’d love to start a case tomorrow,” he said, adding that he could file a lawsuit as soon as today.
He said the tax would mean sales will go down and jobs would be lost.
Teamsters Local 830 secretary-treasurer Daniel Grace agreed that a legal battle is ahead.
“We offered alternatives, and they didn’t want to listen,” Grace said.
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