New Details Emerge About Proposed Soda Tax During City Council Budget Hearings
PHILADELPHIA (CBS) -- The Kenney Administration is anticipating a legal challenge to the sugary beverage tax it has proposed, and, if it loses, the tax would be levied on retailers, not on the distributor.
The details came out during city council budget hearings on Wednesday.
City Solicitor Sozi Tulante says he's confident the city would win any suit that tried to stop enactment of the tax, if city council passes it, but, should legal action stop or delay it, the proposed legislation would make retailers liable for the tax.
"In the event a court of competent jurisdiction rules in a decision from which no further appeals — so all appeals have been exhausted — that a licensed distributor is not liable to the city for the tax, then the dealer, which is a retailer, to which the licensed distributor provided the beverage, shall be liable," Tulante said.
The mayor has said he doesn't believe distributors would pass the full tax along to consumers, but city council members said they feared a retailer may be more likely simply to add it to the purchase price.
Budget officials say they expect soda prices to go up as a result, in any event, and have included a drop off in consumption in their revenue projections.
Council has about another month to decide on the tax, if it wants to recess for the summer, as scheduled, June 16th.