Maryland lawmakers consider 2-cent tax on sugary drinks

Yahoo

13-02-2025

The Brief
Maryland lawmakers are considering a 2-cents-per-ounce tax on sugary drinks.
If enacted, it's expected to generate up to $500 million annually.
The money would go towards expanding access to free school meals, childcare subsidies, and the state's general fund.
The next time you sip a Coke or a Kool-Aid, it could cost you.
Maryland lawmakers are considering what's called the For Our Kids Act, which would impose a tax of 2-cents-per-ounce on sugary drinks, syrups, and powders. That includes artificially sweetened drinks, like a Diet Coke.
It does not include products like natural juice.
What they're saying
"In aggregate, we're anticipating bringing in $500 million dollars a year," said Del. Emily Shetty (D – Montgomery County), adding that the money would go towards expanding access to free school meals, childcare subsidies, and the state's general fund – helping to shore up a $3 billion budget deficit.
"We want to improve public health in our communities and really address the root cause of why our healthcare is starting to cost a lot more money, right? Like, as we have increases in consumption of sugary beverages, you see increased rates of cardiovascular disease, of dental issues, of cancers," Shetty explained.
The legislation is similar to a law that was previously passed in Philadelphia, but Shetty said Maryland would be the first jurisdiction to enact a measure like this statewide.
The other side
There is opposition to the bill.
House Minority Leader Del. Jason Buckel (R – Allegany County) sent FOX 5 a statement, saying, "It is disappointing that some in the General Assembly seem to pay no attention to the financial struggles many Maryland families are facing.
This is a significant tax on items that are a staple in many households – not just sodas but on sugared drink mixes for lemonade and tea, Hi-C drink boxes, even Gatorade. This is not about making Marylanders healthier, it is about raising revenue because of our failed economic and spending policies here in Annapolis."
Del. Kathy Szeliga (R – Baltimore County) also weighed-in, writing, "I fully support making Maryland healthy again, including efforts to reduce sugary drink consumption. If this new $500,000 tax proposed on sugary drinks was used to lower our total sales tax burden, it would be a win-win by improving health while lowering taxes. Unfortunately, this new tax will go into Maryland's general fund and create a new program which looks like government taxation disguised as health policy."
What's next
The bill still has a long way to go before becoming law.
Shetty said that if everything goes as planned, the earliest the sugary drink tax could go into effect would be in about a year and a half.
The Source
For Our Kids Act, Del. Shetty, Del. Buckel, Del. Szeliga