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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.
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Northern California town's sugary soda tax is first to defy state ban

A voter-approved tax on sugary drinks has taken effect in the beachside community of Santa Cruz on the California coast.

·United States
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MY Northwest broke the news in Tacoma, United States on Thursday, May 1, 2025.
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