Colorado Lawmakers Want Soda Sales Tax to Fall Flat

Republican lawmakers seek to repeal state sales tax on soft drinks.

February 24, 2011

DENVER - A Colorado plan by Republican lawmakers seeks to repeal sales taxes on soft drinks, a move that faces stiff opposition due to a severe budget crunch and a rising statewide obesity rate, the Associated Press reports.

Coloradans began paying a 2.9 percent sales tax on sodas and candy in March 2010, as lawmakers sought additional revenue and a means to confront obesity. Prior to that date, sugary items were considered foods exempt from state sales taxes.

But a proposal that went before a House committee yesterday targets the soda tax while leaving the candy tax in place. Rep. David Balmer said the bill would help families save a few pennies at the store.

"The tax is falling on families all across Colorado, and I don't believe the Legislature should be singling out certain beverages and taxing them," Balmer said, adding that diet sodas are a healthier choice than some sugary juices and sports drink. "It??s unfair to tax soda," he argued.

The Colorado Beverage Association supports the measure, and CBA??s executive director, Chris Howes, says the Legislature acted irrationally when it began taxing candy and soda.

"It inexplicably just picked out two items and said, 'These are the ones we want to tax, these are the ones making people fat, not potato chips, not ice cream,'" Howes said. "We've never understood why soda, this one item, was picked out of all the items in the grocery store."

Opponents argue the repeal would cost Colorado more than $12 million next year, while health advocates maintain the higher taxes help cover the higher health costs attributed to obesity.

As such, some Democrats have vowed to fight repeal of the tax, pointing out that Colorado is facing a huge deficit and it shouldn??t waive taxes on non-essential items.

"When you're trying to decide if we should put money into books and pencils for kids or subsidizing soda for kids, it's a pretty easy call," said Rep. Mark Ferrandino.

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