The Soda Tax:
Will Your Favorite Beverage Cost More?
The sugary-beverages tax approved by Council adds 1.5 cents per ounce to the cost of most drinks with a sugar-based sweetener or artificial sugar substitute. The tax took effect Jan. 1. Some beverages are exempt, including baby formula; products that contain more than 50 percent milk, fresh fruit, or vegetables; and unsweetened drinks to which the buyer adds sugar, or requests that the seller adds sugar.
The tax is paid by distributors, who are expected to pass the added cost to retailers, who then would typically pass the cost to consumers. City and state sales taxes are applied to the cost of the product, which would include any increase from the sugary-beverages tax.
Shown below are items purchased from ShopRite of Whitman Plaza on Jan. 3, with information on whether or not the sugary-beverages-tax is applied. Note: Prices were not increased for several items that are subject to the tax. The sugary-beverages tax applies only to products purchased from distributors after Jan. 1, so retailers may be selling items purchased from distributors before the tax went into effect.

 

Gatorade G2 Grape 8 pack
160 ounces
Sugary-drinks tax:
YES
Grams of sugar: 96
Current price:
$5.99
Sugary-drinks tax:
$2.40
Price on Jan. 3:
(Sugary-beverages tax not yet applied)
$5.99
New price with sugary-drinks tax:
$8.39
(With sales tax: $9.06)
Even though the new levy is often called a “soda tax,” the tax will be applied to many different types of beverages with added sugar — including sports drinks. This beverage contains 12 grams of added sugar per bottle. ShopRite has not added the cost of the sugary-beverages tax as of Jan. 3.

 

 

Turkey Hill Iced Tea
18.5 ounces
Sugary-drinks tax:
YES
Grams of sugar: 40
Current price:
$0.99
Sugary-drinks tax:
$0.28
New price:
$1.27

 

 

Arizona Arnold Palmer Lite Iced Tea & Lemonade
128 ounces
Sugary-drinks tax:
YES
Grams of sugar: 208
Current price:
$2.50
Sugary-drinks tax:
$1.92
Price on Jan. 3:
(Sugary-beverages tax not yet applied)
$2.50
New price with sugary-drinks tax:
$4.42
The sugary-beverages tax increases the cost of this product
by 77 percent.

 

 

Honest Tea Organic Half Tea & Half Lemonade
16.9 ounces
Sugary-drinks tax:
YES
Grams of sugar: 25
Current price:
$1.39
Sugary-drinks tax:
$0.25
New price:
$1.64
Even though this beverage is organic and lists “fair trade organic cane sugar” as an ingredient, it is still a drink with an added sweetener, so the tax is applied.

 

 

Glaceau vitaminwater zero - Revive - Fruit Punch
20 ounces
Sugary-drinks tax:
NO
Grams of sugar: 0
Current price:
$1.00
This bottle of flavored water contains no added sugar, so it is not subject to the tax. Other Glaceau products contain crystalline fructose and cane sugar as added sweeteners, and will be taxed.

 

 

Gatorade Thirst Quencher Lemon-Lime
32 ounces
Sugary-drinks tax:
YES
Grams of sugar: 52.5
Current price:
$1.00
Sugary-drinks tax:
$0.48
Price on Jan. 3:
(Sugary-beverages tax not yet applied)
$1.00
New price with sugary-drinks tax:
$1.48
(With sales tax: $1.60)

 

 

Bai 5 Antioxidant Infusions Beverage - Malawi Mango
18 ounces
Sugary-drinks tax:
YES
Grams of sugar: 2
Current price:
$2.00
Sugary-drinks tax:
$0.27
New price:
$2.27
(With sales tax: $2.45)
This beverage has only two grams of sugar but is sweetened with stevia, which is listed as an "artificial sugar substitute" in the sugary-drinks-tax legislation.

 

 

Monster Energy Drink
16 ounces
Sugary-drinks tax:
YES
Grams of sugar: 54
Current price:
$2.00
Sugary-drinks tax:
$0.24
New price:
$2.24
(With sales tax: $2.42)
 

 

 

V8 Veggie Blends Carrot Mango
46 ounces
Sugary-drinks tax:
NO
Grams of sugar: 72
Current price:
$3.29
This V8 beverage has 72 grams of sugar but is also a 75 percent blend of vegetable and fruit juice, so it is not taxed.

 

 

V8 Splash Carrot Orange Juice Drink
64 ounces
Sugary-drinks tax:
YES
Grams of sugar: 104
Current price:
$2.39
Sugary-drinks tax:
$0.96
New price:
$3.35
(With sales tax: $3.62)
This drink is sweetened with high fructose corn syrup and contains only 15 percent juice, so the tax is applied.

 

 

Similac Advance Stage 1 Ready to Feed
32 ounces
Sugary-drinks tax:
NO
Grams of sugar: 0
Current price:
$7.49
All baby formula is exempt from the sugary-drinks tax.

 

 

Coca-Cola Zero
20 ounces
Sugary-drinks tax:
YES
Grams of sugar: 0
Current price:
$1.99
Sugary-drinks tax:
$0.30
New price:
$2.29
(With sales tax: $2.47)
Kenney's original plan would have taxed sugary beverages at 3 cents per ounce, with diet beverages exempt. The compromise plan that passed Council cut the rate in half but extended the tax to diet beverages, such as this one.

 

 

Coca-Cola Classic
67.6 ounces
Sugary-drinks tax:
YES
Grams of sugar: 234
Current price:
$1.99
Sugary-drinks tax:
$1.01
Price on Jan. 3:
(Sugary-beverages tax not yet applied)
$1.99
New price with sugary-drinks tax:
$3.00
(With sales tax: $3.24)
The sugary-beverages tax increases the cost of this product
by 51 percent.

 

 

Coca-Cola 12-pack cans
144 ounces
Sugary-drinks tax:
YES
Grams of sugar: 468
Current price:
$5.58
Sugary-drinks tax:
$2.16
Price on Jan. 3:
(Sugary-beverages tax not yet applied)
$5.58
New price with sugary-drinks tax:
$7.74
(With sales tax: $8.36)
The tax will add more than $2 to the cost of this 12-pack.

 

 

Starbucks Double Shot Energy Coffee Drink - Mocha
15 ounces
Sugary-drinks tax:
YES
Grams of sugar: 26
Current price:
$2.79
Sugary-drinks tax:
$0.23
New price:
$3.02
 

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Story: Philly finds new tax not so sweet

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