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1 Scott Drenkard, Soda Tax Proposals Bubbling up in California 1 (2012)

handle is hein.taxfoundation/ffddcxz0001 and id is 1 raw text is: FONAINFiscal Fact
October 25, 2012
No. 332
Soda Tax Proposals Bubbling Up in California
By
Scott Drenkard
On November 6, voters in two California cities will consider imposing new excise taxes on soft drinks at the
rate of 1 cent per ounce. In Richmond, California (across the Bay from San Francisco), voters will consider
Measure N, which imposes a business license fee on soda providers, and Measure 0, which spends the
proceeds.' In El Monte, California (east of Los Angeles), voters will consider Measure H, which imposes a
sugary sweetened beverage license fee, and Measure C, which spends the proceeds.2 Additionally, in early
August, officials in Baldwin Park, California rejected a proposed soda tax ballot initiative.'
In 2011, fourteen states considered similar legislation calling for increased excise taxes on soft drinks.4
Though thirty-three states currently treat soda differently than groceries for tax purposes and four states
currently have mild excise taxes on soda (Arkansas, Tennessee, Virginia, and West Virginia), if passed, the
proposals in Richmond and El Monte would be the largest taxes on soda in any American city. While
labeled as only a penny per ounce, the tax could be considerable depending on the purchase (see Table 1).
Scott Drenkard is an economist at the Tax Foundation. The author would like to thank Andrew McIntosh, Joseph Henchman,
Benjamin Stutts and Julia Morriss for their assistance on this report.
1 See Ballotpedia, City of Richmond Tax on Soda, Measure N (November 2012),
http://baliotpcdia.orgiwiki/indei.php/City of Richmond Tax on Soda. Measure N (November 2012).
2 See Ballotpedia, City of El Monte Soda Tax, Measure H (November 2012),
hL:/baliotpdia.orgwikiiindex.phpiCitv of' El Monte Soda Tax, Measure H (November 2012); Ballotpedia, El Monte Use
of Revenue from Measure H, Measure C (November 2012),
1-t-://ballotedia.or,wiki/iidex.pbpl E1 Monte Use of Revenue from Measare H, Measure ( (N vember 2012).
See Scott Drenkard, Councilmembers in Baldwin Park, California Put Kibosh on Soda Tax Proposal, TAX FOUNDATION TAX
POLICY BLOG, Aug. 6, 2012,  itrp -//1axfoundAtion  -rg--)--g----u-C-------ers-b dw--- in-prk.c---nia --k- bos--- .sda  ta..
proposal.
4 See Scott Drenkard, Overreaching on Obesity: Governments Consider New Taxes on Soda and Candy, TAX FOUNDATION SPECIAL
REPORT NO. 196 (Oct. 31, 2011), h;: ..tixt  -                         o , . i.og/at rtcic /verreaching-.bc..y-govcrncents-consider-new-taxcs-soda-
a. t d--cando>_o'. /a-icc/~e.rebs'                                 _rn

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