Northern California town’s sugary soda tax is first to defy state ban
- Santa Cruz, a beachside city of 60,000, implemented a 2-cent-per-ounce sugary drink tax starting Thursday, following voter approval in November 2024.
- This tax defies California’s 2018 Keep Groceries Affordable Act that banned local grocery taxes, a reluctant deal with the beverage industry, and legal challenges create uncertainty.
- The tax applies to sodas, iced teas, sports drinks, and other sweetened non-alcoholic beverages with 40+ calories per 12 ounces, exempting small businesses under $500,000 annual gross receipts.
- The measure was approved by voters with a 52%-48% margin, despite the American Beverage Association investing $2.8 million in opposition and arguing in court that the tax was unlawful and could place a burden on the city’s resources.
- Santa Cruz officials aim to reduce sugar consumption and fund health programs, hoping their tax inspires other communities despite opponents citing regressive impacts on low-income families and businesses.
21 Articles
21 Articles

Santa Cruz’s sugary soda tax is first to defy state ban
By JANIE HAR | Associated Press SAN FRANCISCO — A tax on sugary drinks takes effect Thursday in the beachside community of Santa Cruz, seven years after California banned its cities and counties from implementing local grocery taxes as part of a reluctant deal with the powerful beverage industry. The 2-cent-per-ounce tax, approved by voters in November, is the first in the state since lawmakers approved the 2018 deal. The American Beverage Assoc…
Sugary drinks tax takes effect in California beach town despite state ban
A tax on sugary drinks takes effect Thursday in the beachside community of Santa Cruz, seven years after California banned its cities and counties from implementing local grocery taxes as part of a reluctant deal with the powerful beverage industry. The 2-cent-per-ounce tax, approved by voters in November, is the first in the state since lawmakers approved the 2018 deal. The American Beverage Association spent heavily to campaign against the bal…
Here’s why Santa Cruz just added a soda tax, in defiance of a statewi…
A new so-called “soda tax” that was approved by voters in the city of Santa Cruz went into effect on Thursday, the first tax of its kind to be passed in California since a ban was signed by former Gov. Jerry Brown in 2018.The tax — approved by voters in November — adds a 2-cents-per-ounce [...]
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