March 7, 2014
BDI News: Weekly Tips


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Proposed Soda Tax

Illinois consumers as well as a variety of hospitality businesses could find the cost of sugar-laden soft drinks to be on the rise soon.  A new bill in the Illinois Senate would add a one cent tax per ounce of sugary drinks sold in the state.


The synopsis of the bill details that the distributor of the beverage would collect the tax up front, with the expectation that businesses "shall pass the amount of tax through to the consumer."  It also wraps distributors in more red tape, as they would have to obtain new permits.


The bill was proposed as part of a larger goal of encouraging healthier living in Illinois.  Revenue from the tax would be ticketed for a variety of unspecified health and education services.


Opponents of the bill fear that the higher cost would lead to less consumption.  In turn, that could affect the number of jobs from production to bottling to delivery of soda products, as well as less revenue for retailers who sell or serve such drinks and already operate on thin margins.


At 1 cent per ounce and 12 ounces per can, the cost of a 12 pack of cans would increase by $1.44. The bill targets regular sodas, beverages that are less than 50% juice, sports drinks and ready-to-drink coffees and teas.


Will you be contacting your Representative?  Do you think such a bill would actually help make Illinois any healthier?  Please share your thoughts on our Facebook page.

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Bret Dixon Insurance