Public hearing on soda tax Thursday
If your business involves selling or buying sweetened beverages such as soda and concentrated juices, the City of Philadelphia wants to hear from you.
Update: Since the publication of this article, city officials have clarified that if a fruit or vegetable juice is unsweetened, it is exempt from the soda tax, even if made in a factory. Also, the only rice- or nut-based milks that would be taxed are those that are both sweetened and fail to meet USDA Minimum Nutrition Standards.
Earlier Story:
If your business involves selling or buying sweetened beverages such as soda and concentrated juices, the City of Philadelphia wants to hear from you.
A public hearing will be held Thursday to discuss the city's proposed regulations for the new beverage tax that is scheduled to go into effect Jan. 1. The hearing will be at 1 p.m. at 1515 Arch St., 18th floor.
The tax will add 1.5 cents per ounce to the cost of most sugary and diet beverages. Mayor Kenney sought it to pay for expanded early childhood education and a number of other initiatives. The tax, applied at the distributor level, is expected to generate about $92 million annually.
A group of affected businesses has sued to block the tax.
In the meantime, the city has agreed to requests from the American Beverage Association and other entities concerned about the tax to hold a public hearing.
"It is the discretion of the Revenue Commissioner to make changes based on the public comment," city spokesman Mike Dunn said.
The regulations break down the specifics of what items will be taxed. For example, more than 60 types of sweeteners are listed, including healthier alternatives such as agave, stevia, and juice concentrates. Syrups intended to sweeten a beverage would also be taxed.
Milk and any product that is more than 50 percent milk-based would be exempt from the tax as long as no sweeteners are added. Soy milk is also exempt. However, rice milk, almond milk, and cashew milk would be taxed under the proposed regulations.
While fresh fruit and vegetable juices are exempt if they are made at time of purchase, fruit and vegetable juices made in a factory and shipped for retail sale do not qualify for exemption.
The proposed regulations can be found online at alpha.phila.gov/media/20160909181753/Proposed-Sweetened-Beverage-Tax-Regulations.pdf.
The Revenue Department will also accept emailed suggestions on the regulations until 5 p.m. Monday. Testimony should be emailed to chris.hazle-cary@phila.gov.
215-854-5520@InqCVargas