Texas Legislator Proposes Soda Tax

State Rep. Joe Farias is calling for a penny-per-ounce tax on "certain sweetened beverages."

February 04, 2013

AUSTIN - Texas state Rep. Joe Farias introduced a bill last week that would add a penny per ounce tax on "certain sweetened beverages and ingredients," writes the Courthouse News Service.

Under the bill, sweetened beverage powders and syrups would also be taxed for each ounce of sweetened beverage that would be produced from them, according to the 10-page bill. The tax would be indexed to inflation and paid by businesses that sell the drinks to the "ultimate consumer."

If enacted, the bill would also add a 50% penalty on those who fail to pay the tax, get the necessary state permit and file regular reports. It would expose business owners to a criminal, Class C misdemeanor charge if they fail to pay.??

No-calorie diet drinks, 100% vegetable or fruit juices by volume, drinks with more than 0.5% alcohol, sports drinks, electrolyte replacement drinks, unsweetened milk, baby formula, and water, coffees and teas with no-calorie additives would be exempt from the tax.

The news source writes that this is the second attempt by Farias to tax soda sales in Texas; a similar bill in March 2011 failed to pass. At that time he said, "Taxation can be an effective way of reducing soft drink consumption, and, ultimately, obesity."

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