California Lawmaker Proposes Beverage Tax

The bill would add a 1-cent tax per ounce for every bottled sweetened beverage with more than 25 calories per 12 ounces.

May 29, 2013

SACRAMENTO, Calif. – Californians may have to pony up an extra penny-per-ounce to buy sweetened drinks, CBS News reports. State Sen. Bill Monning introduced a bill that would tack on a 1-cent tax per ounce for every bottled sweetened beverage with more than 25 calories per 12 ounces.

Beverage distributors would pay the fee, but could pass along that cost to consumers. That would mean an extra $1.44 for a dozen soda cans. The tax money would be funneled into the Children’s Health Promotion Fund.

“We're witnessing the perfect storm — a costly childhood obesity crisis driven by a 228% increase in soda consumption and looming budget cuts that would abandon the very programs protecting those children,” said Monning, in a press release. “(The bill) will address these problems. It's only fair that the sweetened beverage industry pay their fair share to address the crisis.”

Milk drinks would not fall under the tax, nor would fruit or veggie juices unless the fruit or vegetable content fell under 50% of the beverage. Thus far, the California Senate Governance and Finance Committee approved the measure, pushing it along to the Senate Health Committee.

Elsewhere in the country, other states are considering similar proposals. For example, a Texas lawmaker proposed a penny-per-ounce tax on certain sugared drinks, while Rhode Island has before its legislative body a $1.28 per gallon tax on any sugar-sweetened soft drink, and powder or syrup drink. Meanwhile, Denmark is getting rid of its decades-old tax on soft drinks starting in July.

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