Cook County Soda Tax Gets Judge's OK To Go Forward

CHICAGO, IL — A judge ruled Friday to allow Cook County's 1-cent tax on sugary drinks to go into effect after a lawsuit by area retailers who claimed the measure was too vague and unlawful delayed it for nearly a month, the Daily Herald reports. Last month, Cook County Judge Daniel Kubasiak issued a temporary restraining order against the county's so-called soda tax that stopped it from beginning July 1. His ruling Friday, however, wasn't clear when the tax's new start date will be, the report added.

Under the tax, "sweetened beverages" — which the county defined as drinks containing sugar or artificial sweetner, such as carbonated soft drinks, fruit drinks that don't contain 100 percent juice and sports and energy drinks — would be taxed a penny for each ounce sold in bottles, cans or as fountain drinks. County officials estimated the tax would generate around $200 million annually. (Get Patch real-time email alerts for the latest news for Chicago — or your neighborhood. And iPhone users: Check out Patch's new app.)

RELATED: Cook County Soda Tax Temporarily Put On Hold By Judge

The temporary injuction was part of a last-minute lawsuit by the Illinois Retail Merchants Associations and several area grocers. The complaint claimed the new tax violated the Illinois Constiution because it lacked uniformity on how it was applied. For instance, a bottled coffee drink sold in a store would be taxed, but a similar beverage made by a coffee shop employee wouldn't.

Retailers asked for the injunction in order to protect them against possible consumer class-action lawsuits demanding refunds if the county tax eventually was struck down after the fact. Although customers are responsible for paying the tax, retailers can be fined — $1,000 for the first offense, $2,000 for the second — for not collecting it.

RELATED: Penny-Per Ounce Soda Tax Purgatory Spurs 300 Cook County Layoffs

In his ruling Friday, Kubasiak dismissed the lawsuit, saying he didn't believe there was anything unconstitutional about the tax, the Herald reports. He also said that the measure sufficiently explained what it entailed, the report added.

Although the lawsuitwas shot down, an initiative of more than a dozen Cook County groups opposed to the soda tax is still trying to defeat the measure in other ways. In a statement following the ruling, the Can the Tax Coalition urged residents to pressure county commissioners into repealing the measure.

“Just because a judge has allowed this unfair tax to go forward does not mean Cook County should do it," a statement from the group said Friday. "Now is the time for Cook County commissioners who say they represent every day working families to stand up for them and stop this destructive tax from going into effect.

RELATED: In-Limbo Soda Tax Will Spur 1,110 Cook County Layoffs, Officials Say

"This tax hits Cook County families with enormous price increases, places at risk 6,100 middle class jobs and $1.3 billion in economic activity, and will devastate our small businesses by sending shoppers to stores over the border. These are risks Cook County residents cannot afford and County commissioners should act immediately to repeal the beverage tax.”

While the judge's ruling Friday means the soda tax can be enacted, it came after about 300 county employees were laid off earlier this month. Officials estimated that around 1,100 workers could have been let go by the county if Kubaskiak ruled against the tax. The Cook County Sheriff's Office also laid off more than 100 employees because of the missing revenue that officials had estimated the tax would generate, the Herald reports.

More via the Daily Herald

Patch will continue to update this story.

UPDATED (3:35 p.m. Friday, July 28)

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