Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls
On June 16, 2016, the Philadelphia City Council adopted legislation implementing a city-wide excise tax on nonalcoholic sugar-sweetened and diet beverages. Levied on distributors, the 1.5 cent-per-ounce beverage tax went into effect on January 1, 2017.
The tax, which is 24 times the state excise tax rate on beer, has received mixed reviews among constituents. Some Philadelphians support the tax for the programs it funds. Meanwhile, local business owners and workers have filed lawsuits against the tax.