Rhode Island Debates Taxing Soft Drinks

A state lawmaker has sponsored a bill that would institute a new tax on sweetened soda.

March 11, 2011

PROVIDENCE, R.I. - Rhode Island lawmakers are once again considering a bill that would tax sweetened soft drinks, the Providence Journal reports. Last year, state Representative Edith Ajello, chair of the House Judiciary Committee, introduced a similar measure that did not progress, and she??s brought a new bill to the House this year.

House Bill 5432 picked up two other sponsors and would establish a penny per ounce tax on sweetened soda, with the distributor, manufacturer or wholesaler paying the tax. Her 2010 bill had flat rates for different sized beverages and also had the tax paid at the retail level.

Ajello changed the bill in hopes that her fellow legislators would find it more palatable. She estimates the tax would bring in around $28 million in annual revenue, which Rhode Island could use for health education.

During a mid-week hearing, close to 30 people testified, including representatives from Coca-Cola and Pepsi. Supporters of the tax pointed out that the consumption of sugared sodas play a role in obesity.

Opponents countered that the tax unfairly targets soda and would cost consumers and businesses. "Grocery bills will increase, and jobs will be lost," said Carolyn Murray with the Rhode Island Beverage Association.

"We will lose business ... and will have to cut jobs," said Tracy Anthony, general manager of Clements?? Marketplace.

The committee has not yet voted on the measure.

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