Beverage Tax Not Popular in Westchester

A proposed change in the 2010-11 state budget could leave New Yorkers reaching a little deeper into their pockets next time they purchase their favorite sugary refreshment.

A new tax will be considered this year that would add approximately one cent in taxes to every ounce of some drinks.  The goal, according to a press release from the governor's office, is to cut obesity while creating revenue for New York's health programs. 

But some Westchester County residents are not on board with the change.

"I think they're crazy," said James Murabito, who owns a beverage center in Harrison.  "That it is the most absurd bill I have ever heard."

Murabito said that the change would hurt his business, adding that he has already seen a decrease in sales over the past few months.

The proposal has also caught the attention of Ken Jenkins, the Chairman of the Westchester Board of Legislators. 

Jenkins said that although he applauds many of the money saving proposals in the budget, he fears that a beverage tax could lead to small and large companies leaving Westchester County.

"You don't know what tiny straw is going to break the back," said Jenkins.

One Westchester company that would be directly affected by the tax is the Pepsi Bottling Group's corporate headquarters in Somers.  Although the company has not publicly threatened to leave, Jenkins points out that if PepsiCo chose to make the 20 mile migration to Connecticut, Weschester County would pay the price.

"If PepsiCo leaves Somers, it's not just an impact on the number of jobs, their tax base is obliterated with one corporation at that size," he said.  "It's a huge threat."

But not everyone believes that the tax hike will matter to large corporations.

"I think, basically, everything is passed on," said Barry Schwartz, a store manager at Food City Markets in Harrison.  "They have been here for so many years and through so many taxes, one more isn't going to hurt."

Although the tax would generate much needed revenue for the state, an open letter by Governor David Paterson focuses on public health.  In that letter, Paterson connects high calorie soft drinks with numerous health issues including obesity and diabetes.

But Jenkins, isn't sold.  He says that if the goal is to make people healthier, he would prefer to educate people on their diet, instead of taxing them.

"It's more the education and utilizing the power of the government to help people make smarter choices," said Jenkins.  "Not taxing someone because you can."

Westchester County already requires large chain restaurants to display the calorie content of their menu, a move that Jenkins says is helping in the fight against obesity.  Taxes on cigarettes have also made headlines in recent years.

"We're not trying to ignore the fact that there are concerns about health," Jenkins said.  "But there are other ways to approach it."