News

Beverage industry, others sue to block Philadelphia soda tax

Written by The Associated Press | Sep 14, 2016 1:59 PM

sodatax-anti.jpg

Photo by AP Photo/Matt Rourke, File

(PHILADELPHIA) -- The American Beverage Association and others are suing to challenge a soda tax set to take effect in Philadelphia in January.

The beverage industry had spent more than $10 million fighting the plan before the Philadelphia City Council approved it in June.

The tax amounts to 18 cents on a 12-ounce can of soda or $1.44 on a six-pack of 16-ounce bottles.

Berkeley, California, has a similar soda tax while Chicago taxes retail soft drink sales and fountain drinks.

But soda tax proposals have failed in more than 30 cities and states.

The beverage industry groups, restaurants and consumers who filed the lawsuit Wednesday complain that the tax duplicates the state sales tax.

They also say it unfairly taxes drinks based on their size, not price.

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