Berkeley Voters to Consider Measure to Place Tax on Soda Drinks

Berkeley voters on the November ballot are being asked whether the city should impose a one-cent-per-ounce tax on sugary drinks such as sodas. Supporters of Measure D say the tax is needed because overwhelming scientific evidence shows that consumption of sugary drinks causes widespread health problems, including diabetes and heart disease, starting in childhood. But opponents allege that the measure is riddled with loopholes for some businesses and it doesn’t make sense because chocolate milk, alcoholic beverages and some coffee drinks wouldn’t be taxed no matter how much sugar or how many calories they contain.

No U.S. city currently taxes sugary drinks, but a similar measure is also on the Nov. 4 ballot in San Francisco. A proposed soda tax in Richmond was rejected by voters in that East Bay city in 2012. Measure D, which the Berkeley City Council placed on the ballot in a unanimous vote and is supported by a large number of educational and health groups, would place a general tax on sodas and other sugar-sweetened drinks sold in the city.

City officials say the tax would be payable by the distributor, not the consumer, and would affect only businesses with annual gross receipts of more than $100,000. The measure exempts sweeteners such as sugar, honey and syrups that are used by consumers and distributed to grocery stores, drinks and sweeteners distributed to “very small” retailers and diet drinks, milk products, 100 percent juice, baby formula, alcohol or drinks taken for medical reasons.

Measure D would also establish a panel of health professionals and educators to advise the City Council on how to best support programs to reduce the consumption of sugary drinks and address the effects of consuming them. Opponents, who include the American Beverage Association and local restaurant and movie theater owners, allege in their ballot statement that “Measure D is written so that the City Council can ignore the panel’s recommendations and spend the tax revenue on anything they want.” Opponents say, “This tax is not about health, it’s about raising more money for the city” because the money will be funneled into the city’s general fund. They say the city could shift the money to other things beside educating people about the dangers of drinking soda.

The opponents said in their ballot statement, “Singling out some sugar-sweetened beverages for taxation but providing exemptions for others doesn’t make sense. If this law won’t be applied with any consistency, what’s the point?”

By Bay City News

Photo courtesy Morguefile.

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