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Philadelphia
Imposes Soda Tax |
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The Philadelphia city council on 16 June 2016 overwhelmingly
(13-4) passed an
ordnance to impose a sugary sweetened drinks tax.
The ordnance was signed by the Mayor on 20 June 2016.
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The tax would impose a 1 ½ cents per ounce cost.
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This will impact Dealers (Retailers) and Distributors.
Hence, it will impact any person engaged in the
business of selling sugar-sweetened beverage for retail sale
within the City, including but not limited to restaurants;
retail stores; street vendors; owners and operators of
vending machines; and distributors who engage in retail
sales.
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The ordnance appleis to
sugar-sweetened beverages include, but are not limited to,
soda; non-100%-fruit drinks; sports drinks; flavored water;
energy drinks; pre-sweetened coffee or tea; and
non-alcoholic beverages intended to be mixed into an
alcoholic drink.
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The ordnance also requires that
all retailers acquire sugar-sweetened beverages from a
registered distributor on or after January 1, 2017.
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The registered Distributor will
be responsible for paying the tax to the City.
However, if the Dealer (Retailer) did not obtain
their sugar-sweetened beverage from a registered Distributor
then they will be liable for paying the tax to the City.
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If the Dealer is also a
Registered Distributor no additional tax is imposed if they
supply sugar-sweetened beverages to other Dealers.
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Distributors will also have to
file a report quarterly showing how much sugar-sweetened
beverages they sold and the amount in taxes owed.
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Any business that fails to comply
with this ordnance will result in the suspension of their
business license from the city.
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This
ordnance will take effect January 1, 2017. |
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Sources:
Philadelphia City
Council Ordnance
Philadelphia City
Council Ordnance History
By Bill
Williams
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