Philadelphia Set To Be First Major U.S. City With 'Soda Tax'

Philadelphia is set to become the first major U.S. city to implement a tax on sugary drinks after its city council reached a consensus on a proposal Wednesday.

The measure would add a tax of 1.5 cents per ounce to the price of any drink that contains sugar or artificial sweetener, meaning your standard can of soda would be 15 cents more, and a 12-pack would set you back an extra $1.80. Drinks that are at least 50 percent juice are exempt, even if they have added sugar.

Philadelphia Mayor Jim Henney had originally proposed a tax of 3 cents per ounce.

If passed next week by a final council vote, which is expected, the measure would be first of its kind to be implemented in a major American city, following failed attempts in places such as New York and San Francisco.

Critics said a majority of residents oppose that tax and that it will disproportionately affect people who can't pay for it. But city officials said they will be grateful for the extra revenue — a projected  $91 million over the next year that will go toward parks, schools and the city's general fund — not to mention the positive health effects it could have on the city.

Berkeley, Calif., is the only other city in America that has passed a similar tax, and the town has seen a boost in revenue. It passed in November 2014, and one estimate said it brought in nearly $700,000 in new revenue the first six months. In Philadelphia, a city with more than 13 times as many residents, the extra money could be massive.

Other major cities in the United States haven't been as successful in getting such measures passed.

A proposed cent-per-ounce tax in New York state in 2009 was met with heavy opposition. A TV ad from a group called New Yorkers Against Unfair Taxes showed a mother unpacking groceries and saying, "Tell Albany to trim their budget fat and leave our groceries alone."

More recently, a proposed two-cents-per-ounce tax in San Francisco gained a majority of votes among residents in November 2014, the same time as the Berkeley tax was proposed, but it failed to get the two-thirds majority required to pass. More than $7 million was raised in opposition to the tax.

Philadelphia officials said they were happy with the plan in front of them.

 “A 1.5-cent-per-ounce tax increase on soft drinks will have a smaller negative impact on businesses and consumers; be more widely spread among consumers at both ends of the income spectrum; raise the funds necessary to make historic reinvestments in our young people and public spaces; and protect the City from uncertainty by increasing the General Fund balance," said Jannie Blackwell, a Philadelphia city councilwoman.

A statement from Philadelphians Against the Grocery Tax Coalition, which includes beverage trade groups, claimed that 58 percent of Philadelphians oppose the tax.

"We are disappointed that City Council has chosen to move forward with a discriminatory and regressive tax opposed by the majority of Philadelphians," the statement said. "This tax will fall hardest on those who can least afford it, hurting families and small businesses."

Image via user Marlith, Wikimedia Commons