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Here's why Santa Cruz just added a soda tax, in defiance of a statewide ban
Here's why Santa Cruz just added a soda tax, in defiance of a statewide ban

Yahoo

time02-05-2025

  • Health
  • Yahoo

Here's why Santa Cruz just added a soda tax, in defiance of a statewide ban

A new so-called "soda tax" that was approved by voters in the city of Santa Cruz went into effect on Thursday, the first tax of its kind to be passed in California since a ban was signed by former Gov. Jerry Brown in 2018. The tax — approved by voters in November — adds a 2-cents-per-ounce tax on nonalcoholic beverages that have one or more caloric added sweeteners and that have 40 or more calories per 12 fluid ounces of beverage, including sodas, coffees, sweetened ice teas, energy drinks and slushies. Four other cities in California, including San Francisco, Berkeley, Oakland and Albany, already have a tax on sugar-sweetened beverages on the books, with Berkeley being the first city in the country to do so. But Santa Cruz is the first one to institute a new one since legislators and business leaders struck a deal that was signed by the previous governor that prohibited local governments from imposing taxes on soda until 2031. Santa Cruz City Councilmember Shebreh Kalantari-Johnson, who was one of the proponents of the soda tax, told Lookout Santa Cruz after the measure passed in November that the campaign was framed as a battle between Santa Cruz and the American Beverage Assn. 'That really resonated with people, that this was big industry trying to manipulate and strong-arm local voters,' Kalantari-Johnson told the publication. 'We won't let big industry decide for us.' Santa Cruz's sugary drink tax doesn't apply to beverages intended for medical use, beverages that continue less than 40 calories per 12 fluid ounces of drink, beverages for infants, supplemental or meal replacement beverages, milk products, 100% natural vegetable or fruit juice, concentrates, sweetened medication (such as cough syrup) and alcoholic beverages. 'Santa Cruz demonstrates that when presented with the facts about the dangers of sugary drinks, voters see through the soda industry's multi-million-dollar efforts to deceive them with misinformation,' Nancy Brown, chief executive of the American Heart Assn., said in a recent statement. 'The American Heart Association was proud to support the ballot measure and remains committed to the city of Santa Cruz in this years-long David vs. Goliath effort against the beverage industry." Steve Maviglio, a spokesperson for the American Beverage Assn. which lobbied heavily against soda taxes, decried the latest measure in a statement. 'Santa Cruz is implementing a tax that violates a popular statewide ban on grocery taxes and that was opposed by a broad coalition of small businesses, progressive leaders, labor unions, and social justice organizations as an unfair burden on working families already struggling with record-high prices," he wrote in an email. The American Beverage Assn. has also launched a campaign called "Your Cart Your Choice." "The price increases from a tax hurt lower-income communities and people who work paycheck to paycheck the most," according to the campaign's website. "More taxes are the last thing working families need right now amid crippling inflation, supply chain issues and the price of gas making everyday items more expensive already." Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.

Here's why Santa Cruz just added a soda tax, in defiance of a statewide ban
Here's why Santa Cruz just added a soda tax, in defiance of a statewide ban

Yahoo

time02-05-2025

  • Health
  • Yahoo

Here's why Santa Cruz just added a soda tax, in defiance of a statewide ban

A new so-called "soda tax" that was approved by voters in the city of Santa Cruz went into effect on Thursday, the first tax of its kind to be passed in California since a ban was signed by former Gov. Jerry Brown in 2018. The tax — approved by voters in November — adds a 2-cents-per-ounce tax on nonalcoholic beverages that have one or more caloric added sweeteners and that have 40 or more calories per 12 fluid ounces of beverage, including sodas, coffees, sweetened ice teas, energy drinks and slushies. Four other cities in California, including San Francisco, Berkeley, Oakland and Albany, already have a tax on sugar-sweetened beverages on the books, with Berkeley being the first city in the country to do so. But Santa Cruz is the first one to institute a new one since legislators and business leaders struck a deal that was signed by the previous governor that prohibited local governments from imposing taxes on soda until 2031. Santa Cruz City Councilmember Shebreh Kalantari-Johnson, who was one of the proponents of the soda tax, told Lookout Santa Cruz after the measure passed in November that the campaign was framed as a battle between Santa Cruz and the American Beverage Assn. 'That really resonated with people, that this was big industry trying to manipulate and strong-arm local voters,' Kalantari-Johnson told the publication. 'We won't let big industry decide for us.' Santa Cruz's sugary drink tax doesn't apply to beverages intended for medical use, beverages that continue less than 40 calories per 12 fluid ounces of drink, beverages for infants, supplemental or meal replacement beverages, milk products, 100% natural vegetable or fruit juice, concentrates, sweetened medication (such as cough syrup) and alcoholic beverages. 'Santa Cruz demonstrates that when presented with the facts about the dangers of sugary drinks, voters see through the soda industry's multi-million-dollar efforts to deceive them with misinformation,' Nancy Brown, chief executive of the American Heart Assn., said in a recent statement. 'The American Heart Association was proud to support the ballot measure and remains committed to the city of Santa Cruz in this years-long David vs. Goliath effort against the beverage industry." Steve Maviglio, a spokesperson for the American Beverage Assn. which lobbied heavily against soda taxes, decried the latest measure in a statement. 'Santa Cruz is implementing a tax that violates a popular statewide ban on grocery taxes and that was opposed by a broad coalition of small businesses, progressive leaders, labor unions, and social justice organizations as an unfair burden on working families already struggling with record-high prices," he wrote in an email. The American Beverage Assn. has also launched a campaign called "Your Cart Your Choice." "The price increases from a tax hurt lower-income communities and people who work paycheck to paycheck the most," according to the campaign's website. "More taxes are the last thing working families need right now amid crippling inflation, supply chain issues and the price of gas making everyday items more expensive already." Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.

Here's why Santa Cruz just added a soda tax, in defiance of a statewide ban
Here's why Santa Cruz just added a soda tax, in defiance of a statewide ban

Los Angeles Times

time02-05-2025

  • Health
  • Los Angeles Times

Here's why Santa Cruz just added a soda tax, in defiance of a statewide ban

A new so-called 'soda tax' that was approved by voters in the city of Santa Cruz went into effect on Thursday, the first tax of its kind to be passed in California since a ban was signed by former Gov. Jerry Brown in 2018. The tax — approved by voters in November — adds a 2-cents-per-ounce tax on nonalcoholic beverages that have one or more caloric added sweeteners and that have 40 or more calories per 12 fluid ounces of beverage, including sodas, coffees, sweetened ice teas, energy drinks and slushies. Four other cities in California, including San Francisco, Berkeley, Oakland and Albany, already have a tax on sugar-sweetened beverages on the books, with Berkeley being the first city in the country to do so. But Santa Cruz is the first one to institute a new one since legislators and business leaders struck a deal that was signed by the previous governor that prohibited local governments from imposing taxes on soda until 2031. Santa Cruz City Councilmember Shebreh Kalantari-Johnson, who was one of the proponents of the soda tax, told Lookout Santa Cruz after the measure passed in November that the campaign was framed as a battle between Santa Cruz and the American Beverage Assn. 'That really resonated with people, that this was big industry trying to manipulate and strong-arm local voters,' Kalantari-Johnson told the publication. 'We won't let big industry decide for us.' Santa Cruz's sugary drink tax doesn't apply to beverages intended for medical use, beverages that continue less than 40 calories per 12 fluid ounces of drink, beverages for infants, supplemental or meal replacement beverages, milk products, 100% natural vegetable or fruit juice, concentrates, sweetened medication (such as cough syrup) and alcoholic beverages. 'Santa Cruz demonstrates that when presented with the facts about the dangers of sugary drinks, voters see through the soda industry's multi-million-dollar efforts to deceive them with misinformation,' Nancy Brown, chief executive of the American Heart Assn., said in a recent statement. 'The American Heart Association was proud to support the ballot measure and remains committed to the city of Santa Cruz in this years-long David vs. Goliath effort against the beverage industry.' Steve Maviglio, a spokesperson for the American Beverage Assn. which lobbied heavily against soda taxes, decried the latest measure in a statement. 'Santa Cruz is implementing a tax that violates a popular statewide ban on grocery taxes and that was opposed by a broad coalition of small businesses, progressive leaders, labor unions, and social justice organizations as an unfair burden on working families already struggling with record-high prices,' he wrote in an email. The American Beverage Assn. has also launched a campaign called 'Your Cart Your Choice.' 'The price increases from a tax hurt lower-income communities and people who work paycheck to paycheck the most,' according to the campaign's website. 'More taxes are the last thing working families need right now amid crippling inflation, supply chain issues and the price of gas making everyday items more expensive already.'

Northern California town's sugary soda tax is first to defy state ban
Northern California town's sugary soda tax is first to defy state ban

Yahoo

time01-05-2025

  • Business
  • Yahoo

Northern California town's sugary soda tax is first to defy state ban

SAN FRANCISCO (AP) — A tax on sugary drinks takes effect Thursday in the beachside community of Santa Cruz, seven years after California banned its cities and counties from implementing local grocery taxes as part of a reluctant deal with the powerful beverage industry. The 2-cent-per-ounce tax, approved by voters in November, is the first in the state since lawmakers approved the 2018 deal. The American Beverage Association spent heavily to campaign against the ballot measure in the small city of 60,000, and in court called the tax illegal and likely to strain city resources. Santa Cruz officials are prepared to challenge the state's preemption law in court, and despite the legal uncertainty, hope their new tax will spur other states and cities to act. The measure aims to reduce sugar consumption, especially among children and teens, and raise money for health programs and other community initiatives. 'It's about democracy and and standing up to special interests,' said Shebreh Kalantari-Johnson, vice mayor of the Santa Cruz City Council. 'It's about having the independence to generate revenue for our community.' The trade organization representing Coca-Cola, PepsiCo and others said in a statement Wednesday that it is assessing next steps. The tax was opposed by a broad coalition, including labor unions and small businesses, "as an unfair burden on working families struggling with record-high prices,' said Steven Maviglio, a spokesperson for the American Beverage Association. Health advocates have been fighting for more than a decade to tax sugar-sweetened beverages, saying higher prices would curb consumption of a product that increases the risk of obesity, heart disease and stroke. Opponents say the regressive tax disproportionately impacts low-income families who can least afford it and hurts local businesses. Berkeley, a nearby city similar to Santa Cruz, in 2014 passed the country's first tax aimed specifically at sugar-sweetened beverages. A handful of other cities followed, including nearby San Francisco, Oakland and Albany, as well as Philadelphia; Seattle and Boulder, Colorado. No state has approved a sweetened beverage tax at the state level, although some have tried. In 2018, California lawmakers reluctantly passed the Keep Groceries Affordable Act, banning local taxes on soda and other sugary drinks until 2031. In exchange, the advocacy group California Business Roundtable withdrew a beverage industry-backed ballot measure that would have made it much harder for cities and counties to increase any taxes. The deal forced Santa Cruz to abandon its plans to bring a sugary drink tax to a vote. But city leaders didn't give up. That same year, a city councilmember and health advocacy nonprofit sued, arguing that the Groceries Act's penalty provision unlawfully targeted voter-approved charter cities from exercising its authority over local affairs. Under the act, a charter city that pursued a local tax on sweetened drinks could be penalized by losing its sales tax revenue. In 2023, however, a state appeals court struck down the penalty provision as unconstitutional, but did not rule on the preemption itself. In June, the Santa Cruz City Council placed a tax measure on the ballot and in November, nearly 32,000 voters approved it by a margin of 52 to 48. The "no" side spent $2.8 million; the 'yes' side spent under $100,000. The 2-cent-per-ounce tax applies to sodas, ice teas, sports drinks and any other non-alcoholic beverage that contains an added caloric sweetener and has 40 calories or more per 12 fluid ounces of drink. There is an exemption for small businesses with less than $500,000 in gross receipts a year. Carina Moreno opposed the tax measure and said she will have to raise prices at her restaurant, Tacos Moreno. "I was really disappointed when I heard that it did pass,' she said in an email. 'We already pay high prices for sugar drinks." But tax advocates say the Santa Cruz win is stunning given how much money the opposition spent. Dr. John Maa, a San Francisco surgeon and chair of the American Heart Association's advisory committee in California, said the future of sugary drinks taxes may lie in smaller communities where advocates can mobilize grassroots support. 'This is a big week for the soda tax movement,' he said.

Northern California town's sugary soda tax is first to defy state ban
Northern California town's sugary soda tax is first to defy state ban

Winnipeg Free Press

time01-05-2025

  • Business
  • Winnipeg Free Press

Northern California town's sugary soda tax is first to defy state ban

SAN FRANCISCO (AP) — A tax on sugary drinks takes effect Thursday in the beachside community of Santa Cruz, seven years after California banned its cities and counties from implementing local grocery taxes as part of a reluctant deal with the powerful beverage industry. The 2-cent-per-ounce tax, approved by voters in November, is the first in the state since lawmakers approved the 2018 deal. The American Beverage Association spent heavily to campaign against the ballot measure in the small city of 60,000, and in court called the tax illegal and likely to strain city resources. Santa Cruz officials are prepared to challenge the state's preemption law in court, and despite the legal uncertainty, hope their new tax will spur other states and cities to act. The measure aims to reduce sugar consumption, especially among children and teens, and raise money for health programs and other community initiatives. 'It's about democracy and and standing up to special interests,' said Shebreh Kalantari-Johnson, vice mayor of the Santa Cruz City Council. 'It's about having the independence to generate revenue for our community.' The trade organization representing Coca-Cola, PepsiCo and others said in a statement Wednesday that it is assessing next steps. The tax was opposed by a broad coalition, including labor unions and small businesses, 'as an unfair burden on working families struggling with record-high prices,' said Steven Maviglio, a spokesperson for the American Beverage Association. Health advocates have been fighting for more than a decade to tax sugar-sweetened beverages, saying higher prices would curb consumption of a product that increases the risk of obesity, heart disease and stroke. Opponents say the regressive tax disproportionately impacts low-income families who can least afford it and hurts local businesses. Berkeley, a nearby city similar to Santa Cruz, in 2014 passed the country's first tax aimed specifically at sugar-sweetened beverages. A handful of other cities followed, including nearby San Francisco, Oakland and Albany, as well as Philadelphia; Seattle and Boulder, Colorado. No state has approved a sweetened beverage tax at the state level, although some have tried. In 2018, California lawmakers reluctantly passed the Keep Groceries Affordable Act, banning local taxes on soda and other sugary drinks until 2031. In exchange, the advocacy group California Business Roundtable withdrew a beverage industry-backed ballot measure that would have made it much harder for cities and counties to increase any taxes. The deal forced Santa Cruz to abandon its plans to bring a sugary drink tax to a vote. But city leaders didn't give up. That same year, a city councilmember and health advocacy nonprofit sued, arguing that the Groceries Act's penalty provision unlawfully targeted voter-approved charter cities from exercising its authority over local affairs. Under the act, a charter city that pursued a local tax on sweetened drinks could be penalized by losing its sales tax revenue. In 2023, however, a state appeals court struck down the penalty provision as unconstitutional, but did not rule on the preemption itself. In June, the Santa Cruz City Council placed a tax measure on the ballot and in November, nearly 32,000 voters approved it by a margin of 52 to 48. The 'no' side spent $2.8 million; the 'yes' side spent under $100,000. The 2-cent-per-ounce tax applies to sodas, ice teas, sports drinks and any other non-alcoholic beverage that contains an added caloric sweetener and has 40 calories or more per 12 fluid ounces of drink. There is an exemption for small businesses with less than $500,000 in gross receipts a year. During Elections Get campaign news, insight, analysis and commentary delivered to your inbox during Canada's 2025 election. Carina Moreno opposed the tax measure and said she will have to raise prices at her restaurant, Tacos Moreno. 'I was really disappointed when I heard that it did pass,' she said in an email. 'We already pay high prices for sugar drinks.' But tax advocates say the Santa Cruz win is stunning given how much money the opposition spent. Dr. John Maa, a San Francisco surgeon and chair of the American Heart Association's advisory committee in California, said the future of sugary drinks taxes may lie in smaller communities where advocates can mobilize grassroots support. 'This is a big week for the soda tax movement,' he said.

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