The Soda Tax: Will Your Favorite Beverage Cost More?

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The Soda Tax: Will Your Favorite Beverage Cost More?

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The sugary-beverages tax approved by Council adds 1.5 cents per ounce to the cost of most drinks with a sugar-based sweetener or artificial sugar substitute.
The tax took effect Jan. 1 in Philadelphia. 
Some beverages are exempt, including baby formula; products that contain more than 50 percent milk, fresh fruit, or vegetables; and unsweetened drinks to which the buyer adds sugar, or requests that the seller adds sugar.
The tax is paid by distributors, who are expected to pass the added cost to retailers, who then would typically pass the cost to consumers.
City and state sales taxes are applied to the cost of the product, which would include any increase from the sugary-beverages tax.