Nebraska Legislator Seeks to End Soda Tax Exemption

The state medical community is pushing to end what it calls a soft drink subsidy.

January 08, 2013

LINCOLN - Nebraska State Sen. Bill Avery wants soft drink purchasers to pay taxes on the drinks like everyone else does, the Lincoln Journal Star reports. Dr. Bob Rauner, the chairman of the Nebraska Medical Association Public Health Committee, needs funds for a statewide school wellness program to combat growing obesity among students. The two have joined forces to end the soda tax exemption and funnel that money into a wellness program.

Because Nebraska labels soft drinks as food, the carbonated beverage is exempt from taxes when bought at a supermarket or convenience store for later consumption (fountain drinks are subject to the tax). Residents pay a 7% state and city sales tax on other goods.

Rauner said that by revoking the exemption on bottled or canned soft drinks, the state would receive around $11 million in revenue ?" enough to fund his wellness program idea. "You have to focus on the amount of activity during a day. You have to change the food environment. Junk food has gotten out of control. Kids get a cookie for doing well on a test," said Rauner.

Last year, a similar proposal never made it to the full Legislature, but this time around, Rauner thinks it has a better chance. By framing the debate as ending the soft drink "subsidy," supporters are making a distinction between healthy drinks, like orange juice and milk, soft drinks and energy drinks.

Called the Nebraska Healthy Kids Act, the bill gives 70% of the money to the school wellness program, and 30% to local health departments. Avery, who is sponsoring it, said, "There is no way the state should subsidize this industry."

Advertisement
Advertisement
Advertisement