By a vote of 13-4, the Philadelphia City Council approved a new tax on sugary and diet beverages, becoming the first major city in the US to do so.
The tax, set to take effect Jan. 1, levies a 1.5 cent-per-ounce tax on sugar-added and artificially sweetened beverages such as sodas, teas and sports drinks. The tax is applied to distributors. If they pass the entirely onto consumers, a 20-ounce bottle of soda would increase 30 cents. Philadelphia officials say the tax will raise an estimated $91 million during the next year to fund pre-K expansion, community schools and reinvestments in parks and recreation centers, in addition to padding the city’s general fund.