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

COOK COUNTY, IL - Around 300 of an anticipated 1,100 layoff notices have been sent to Cook County workers, as the area's soda tax remained in legal limbo despite a court hearing originally set for last week.

The first bunch of employees received their notices on Friday, according to a Chicago Reader report. Cuts follow Circuit Judge Daniel Kubasiak's canceling of a July 12 hearing on the case. Hours afterward, Cook County Board president Toni Preckwinkle announced that residents should expect more than 1,100 layoffs in the coming days.

READ: In-Limbo Soda Tax Will Bring 1,100 Cook County Layoffs, Officials Say

"Unfortunately, the lawsuit filed by the (Illinois Retail Merchants Association) and others just days before the tax was to take effect has led to what is likely to be a protracted legal fight," Preckwinkle told the Chicago Sun-Times this week. "And while we believe we will ultimately prevail, we must take fiscally responsible actions now."

If all went according to plan, the proposed penny-per-ounce tax would have hit Cook County buyers starting July 1. But IRMA members stepped in to fight the pending mandate's "unlawful and vague" parameters.

Their suit also claims the county tax lacks uniformity when it comes to its application, according to the Chicago Sun-Times. 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 be. The lawsuit argues that such inconsistency violates the Illinois Constitution.

Preckwinkle and other officials reportedly counted $67.5 million worth of soda tax "chickens" before they "hatched." The fee was projected to generate the nearly $68 million value by Nov. 30, and around $200 million on an annual basis.

"The Court is fully aware of the importance of the tax to Defendant's budget," Kubasiak wrote when first granting the restraining order. "However, the Court believes it is necessary to maintain the status quo in order to protect the interests of all consumers, all taxpayers, and the effected merchants."

More on this story:

• Cook County Soda Tax Temporarily Put On Hold By Judge
• Is a Sweetened Drink Tax in Cook County a Sour Idea?

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