$6.4M Collected From Philly Beverage Tax In March

PHILADELPHIA – Philadelphia announced the city's preliminary collections from the beverage tax in March, bringing total collections to $12.3 million in just two months.

According to Mayor Jim Kenney's office, March's prelim collections totaled $6.4 million, which slightly exceeded projected collections.

"Collections of the PBT (Philadelphia Beverage Tax) are expected to fluctuate throughout the year because of seasonal changes in consumption due to events, holidays, and weather," a release from Kenney's office said. Similar patterns are seen with the City’s Liquor and Amusement Taxes."

Kenney's office said the tax is projected to bring in $91 million and said the city expected to reach the $46 million goal for fiscal year 2017 by June.

Meanwhile, Pepsi is planning to pull large products, such as 12 packs and 2-liter bottles, from shelves in the city, saying the tax has caused a drop in sale of those larger products. Coke, on the other hand, said it's shifting to smaller products because that's what customers are looking for.

RELATED: Pepsi Announces Philly Layoffs, Cites Beverage Tax As Impetus

“Ultimately, the businesses of Philadelphia need customers and employees,” Kenney said in the release. “And the investments from the PBT will make sure Philadelphia has a talented workforce by starting with quality education for the young, and by ensuring that Philadelphia is a place where people want to live, work, and shop.”

The city has been attempting to help sweetened beverage distributors manage impacts of the tax.

"The outreach also allowed dealers a chance to learn about efforts and incentives offered by the City to help their businesses," the release said. "For example, through the Department of Commerce, the City offers several programs that can be beneficial to grocery stores and similar establishments, including the InStore Forgivable Loan Program and Business Security Camera Program. Both initiatives enable existing business to make improvements to their establishments."

Additionally, lowering of the City’s Wage and Business Income and Receipts Tax has helped businesses, the city said, saying about 60,000 businesses are no longer have a Business Income and Receipts Tax liability thanks to tax exemptions.

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