Philadelphia legislatures have tighten the screw caps a bit more on those naughty soda drinkers. The Pennsylvania Supreme Court upheld the Philadelphia Beverage Tax (PBT), which adds a 1.5 cent per fluid ounce tax, paid by beverage distributors, on “sugar sweetened beverages.”
Is This a Double Tax?
The city successfully defended the ordinance based on the Sterling Act, a Depression-era law that enables cities with populations over 1 million to enact certain taxes in order to pad city coffers. Sterling Act taxes are legal so long as it doesn’t amount to a double tax. Those fighting the PBT claim that indeed it is a double tax, since buyers already pay an 8% sales tax on the drinks. But the Pennsylvania Supreme Court disagreed.
Helping or Penalizing the Poor?
The purpose of Soda Taxes, according to the World Health Organization, should be to raise money to help fight obesity and other diet-related diseases. Governments claim they will use the money to perform outreach services, especially to the low-income population, to educate them on why sugary sodas are bad for your health, and what better beverage choices could be made.
Showdown in Philly
The PBT was enacted by the state legislature. Philadelphia is the only city in Pennsylvania that is large enough to be effected by the Sterling Act - the next largest city is Pittsburgh with 300,000 residents. In a Pew Poll, Philly residents were against the tax, 54% to 46%.
Related Resources:
- Is a Soda Tax the Solution to America’s Obesity Problem? (Washington Post)
- Share a Coke, Share a Fine: Offering Kids Soda Now a Crime (FindLaw’s Legal Grounds Blog)
- Details on State Consumer Tax Laws (FindLaw’s Learn About the Law)
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