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Court Upholds Philadelphia’s Tax On Soft Drinks

Tax

Last updated on June 13th, 2024 at 04:53 pm

The Commonwealth Court has upheld Philadelphia’s tax on soda in a 5-2 decision. This victory for Philadelphia Mayor Jim Kenney comes on the heels of a similar decision announced in December by a Court of Common Pleas judge.

“Two courts have now considered the arguments of the beverage industry, and both are certain that the Philadelphia beverage tax stands on solid legal grounds,” said Kenney. “As I stated when the beverage tax was upheld in the Common Pleas Court, the children of Philadelphia are waiting for the opportunities that the tax can provide.”

The Commonwealth Court of Pennsylvania is one of Pennsylvania’s two intermediate appellate courts. The Superior Court of Pennsylvania is the other intermediate appellate court in the Pennsylvania Unified Judicial System.

The court cases stem from a lawsuit filed by the Pennsylvania Beverage Association, the Philadelphia Beverage Association, small businesses and city residents.

The suit said the 1.5-cents-per-ounce tax on soft drinks was unconstitutional because of state food and drink taxes already in existence.

Commonwealth Court Judge Michael Wojcik wrote in the majority opinion that, “In this case, the (Philadelphia Beverage Tax) and the sales tax do not tax the same subject, or the same person, and the field covered by the PBT has not been pre-empted by the sales tax.”

The “Ax the Bev Tax” coalition contended that the tax has already eliminated jobs.

“This ruling comes even as the public policy problems of this tax take center stage—the city has yet to meet its full collections goal and is moving the goal posts by revising its revenue projections yet again,” spokesman Anthony Campisi said. “Regardless of today’s ruling, the fact that this tax is bad for Philadelphia families has never been more clear.”

The coalition said it would appeal the decision.

Earlier this month, the Seattle City Council approved a new soda tax that calls for 1.75 cents per ounce to be paid by beverage distributors.

 

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Shelby Team

The Shelby Report delivers complete grocery news and supermarket insights nationwide through the distribution of five monthly regional print and digital editions. Serving the retail food trade since 1967, The Shelby Report is “Region Wise. Nationwide.”

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  • “The children of Philadelphia are waiting to see what opportunities the tax will provide”. Typical political BS……the children will never benefit from the tax, politicians will spend on their pet projects

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