Illinois Lawmakers Introduce Measure to Overturn Chicago Soda Tax

The bill would prohibit taxes on any sweetened drinks based on volume sold.

August 21, 2017

CHICAGO – Five Republican members of the Illinois House of Representatives introduced a proposal last week to halt Chicago’s tax on soft drinks, the Chicago Sun-Times reports. Cook County retailers started collecting the penny-per-ounce soda tax on August 2.

House Bill 4082 would forbid any home rule county from placing a tax based on volume sold on any sweetened drinks. If passed, the measure would essentially revoke the current ordinance in Cook County. “The tax is another cash grab at the expense of those who can least afford it,” said Rep. Christine Winger, one of the bill’s sponsors. Winger said that some parts of Bartlett, Illinois, which has some areas in Cook County, have seen sales of sweetened beverages plummet 80%.

The penny-per-ounce tax has confused retailers. One customer filed a lawsuit against Walgreens for taxing his unsweetened drink, while McDonald’s has been accused of applying the tax as part of the subtotal, not on the sweetened drinks alone. A lawsuit has also been filed against 7-Eleven stores, claiming that all oversized cups receive the tax whether the beverage inside is sweetened or unsweetened.

The tax is intended to apply to carbonated soft drinks (sweetened with sugar or a sugar substitute), energy drinks and sports drinks. Fruit drinks should be taxed but 100% fruit juice should not.

“Isn’t it incredible that we’re getting to a place where, because of our taxes, a can of Budweiser is going to cost less than a can of Coca Cola?” said Rep. Peter Breen, another sponsor of the bill. “What kind of message are you sending to your children and your community?”

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