Sales tax data indicate that soda consumption in Philadelphia was down by about 40 percent in January, the first month that the 1.5-cent-an-ounce tax was in effect, says news site Billy Penn. The actual figure may be different, it says, because the tax is levied on sales by distributors, who may have stocked up ahead of the tax, and because the tax receipt tally of $5.7 million is preliminary.
The mayor’s office says the city expects a decline of 27 percent. Mayor Jim Kenney proposed the tax as a way to pay for city services, particularly pre-kindergarten. Philadelphia was the first large U.S. city to adopt a tax on sweetened beverages in 2016. Berkley, Calif., was the first city overall, with voter approval in a 2014 referendum.
“The $5.7 million in revenue means 380 million ounces of sugary drinks were taxed in January,” said Billy Penn. “In terms of 12-ounce cans, that would be about 32 million. With our population of about 1.5 million, that’s about 21 sugary sweetened beverages per person this month.”