[1/5/17] Imagine paying $8.03 for this 8-pack of Lipton Diet Green Tea that normally costs $4.99.
With 14 Democrats and 3 Republicans, the City Council’s vote was — SURPRISE! — 14-3.
The proceeds from the soda tax ostensibly will go to expand “early childhood education”. It is expected to raise about $91 million annually to be spent on expanding prekindergarten programs in the city; creating community schools; improving parks, recreation centers, and libraries; and offering a tax credit for businesses that sell healthy beverages.
Philadelphia’s 1.5-cent-per-ounce soda tax, the first such tax imposed in a major U.S. city, affects thousands of products – essentially anything bottled, canned, or from a fountain with either sugar or artificial sweetener added, with a few exceptions. That means a 12-oz bottle of regular or diet soda will have 18 cents added to its retail price, in addition to what Philadelphia (2%) and the state of Pennsylvania (6%) charge as sales tax.
That doesn’t sound too bad until you look at the receipt below, for a 10-pack ofPropel Zero Berry Water Beverage Powder Mix (source: The Burning Platform).
The 10-pack was on sale for $5.99, $1 less than its regular price.
The beverage tax was $3.04, which is 51% of what the 10-pack costs(51% of $5.99 = $3.04).