After Gov. David Paterson’s proposed soda tax seemed to fizzle, it’s bubbling up again with a new twist: Along with the penny-per-ounce tax on nondiet and sugary drinks, Paterson is also calling for a sales tax exemption on diet sodas and bottled water.
The new strategy would bring in nearly $200 million less than the original’s projected $1 billion, but would still help the state try to close a $9.2 billion shortfall. Several New York City officials were practically effervescent about the revised tax, urging Albany lawmakers to consider it.
“Paterson has wisely reframed the measure,” Mayor Michael Bloomberg said. “By exempting low-calorie beverages from all state and local sales taxes, while also adding a tax on beverages containing more than ten calories per eight ounces, he has both expanded the health impact of the measure and addressed concerns of the industry.”
The American Beverage Association, however, has not rushed to embrace the plan. It passed requests for comment along to Nelson Eusebio, chairman of New Yorkers Against Unfair Taxes (funded by Coke and Pepsi bottling companies) who said, “We don’t need another tax to fuel more government spending.”
