SPRINGFIELD, IL – An Illinois Senate committee heard testimony last week without taking action on a bill that would impose a one-cent-per-ounce tax on sugar-sweetened beverages, Gatehouse Media Illinois reports.

Proponents of the bill, SB3524, maintained higher prices would help control obesity and other health problems. They said projected revenue raised from the tax — $611 million in the first year — could be used to enhance education in schools and communities.

“We estimate that (a penny-per-ounce tax) would raise prices by about 18 more cents and would lead to reductions in consumption of sugary beverages by almost 150 million gallons a year,” said Dr. Frank Chaloupka, economics professor at the University of Illinois-Chicago.

Opponents of the bill said the tax would eliminate beverage industry jobs as well as provide an incentive to Illinois residents to purchase beverages in neighboring states.

“We have to maintain sensitivity to price pressures,” said Gerry Kettler, director of consumer affairs at Niemann Foods, which owns the County Market chain. “In our opinion, Illinois has already posted significant numbers of sales lost beyond its border s… Passing the (tax) creates another significant reason for Illinois consumers to shop in a neighboring state.”

Illinois currently assesses a 6.25% sales tax on soda. The proposed bill taxes distributors, who would then pass along the increase to consumers.

The increase would cover soda, sports drinks, juices and ready-to-drink coffees and teas.