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Santa Cruz has implemented a new soda tax, becoming the first city in California to do so since a statewide ban was enacted by former Governor Jerry Brown in 2018. Effective Thursday, the tax imposes a 2-cents-per-ounce charge on nonalcoholic beverages with added sweeteners and at least 40 calories per 12 fluid ounces. This includes sodas, sweetened teas, energy drinks, and slushies.
The tax, approved by voters in November, challenges the 2018 agreement between legislators and business leaders that prohibited new local soda taxes until 2031. Santa Cruz City Councilmember Shebreh Kalantari-Johnson, a proponent of the tax, emphasized the campaign as a stand against the American Beverage Association, stating, "We won’t let big industry decide for us" (Los Angeles Times).
The tax excludes beverages for medical use, those with fewer than 40 calories per 12 ounces, infant drinks, meal replacements, milk products, 100% natural juices, concentrates, sweetened medication, and alcoholic beverages. Nancy Brown, CEO of the American Heart Association, praised Santa Cruz for resisting industry pressure, calling it a "David vs. Goliath effort" (AOL News).
However, the American Beverage Association criticized the tax, arguing it unfairly burdens working families amid economic challenges. They launched the "Your Cart Your Choice" campaign to oppose the measure, claiming it disproportionately affects low-income communities (Politico).
The tax's implementation may lead to legal challenges, testing the constitutionality of the 2018 state law.