Philadelphia introduced a tax on sugary drinks Jan. 1.

The tax has generated revenue of $39.3 million, or about 15 percent shy of the original projection of $46 million.

Sales of carbonated soft drinks, the largest sweetened beverage category, fell 55 percent inside the city, according to a study from Catalina. Just outside it, sales rose 38 percent.

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The city started taxing sweetened drinks at 1.5 cents per ounce this year after a contentious debate. The tax was billed as a way to fund community schools, prekindergarten programs, recreation centers, libraries and parks. However, revenue expectations have fallen short every month since the tax took effect in January.

Based on preliminary estimates, the tax generated $39.3 million in revenue through the end of June. That's about 15 percent short the city's original projection of $46 million, and just under its revised estimate of $39.7 million.

A new study from market research firm Catalina found people in Philadelphia are still buying sugary drinks, but they're traveling outside city limits to stock up.

Sales of carbonated soft drinks, the largest sweetened beverage category, fell 55 percent inside the city. Just outside it, sales rose 38 percent. Energy drinks, sports drinks, ready-to-drink coffee and tea and refrigerated juice drinks have all seen similar trends.

The city says it is too soon to judge the tax. It partially blamed the shortfall on retailers stocking up on products before the tax went into effect, said Mike Dunn, a spokesman for the city. Soda sales are also seasonal, he said, and current results only represent the first half of the year.

Catalina's study analyzed 109 million transactions at sales at grocery, mass and drug stores around Philadelphia. Dunn cautioned that supermarkets account for less than half of beverage sales in Philadelphia. He said the city also expected some people to initially drive to the suburbs then change their mind.

Philadelphia's soda tax isn't the windfall some had hoped forPhiladelphia's soda tax isn't the windfall some had hoped for  
11:31 AM ET Tue, 22 Aug 2017 | 00:59
Philadelphia's soda tax is falling flat — for the city, at least.

The city started taxing sweetened drinks at 1.5 cents per ounce this year after a contentious debate. The tax was billed as a way to fund community schools, prekindergarten programs, recreation centers, libraries and parks. However, revenue expectations have fallen short every month since the tax took effect in January.

Based on preliminary estimates, the tax generated $39.3 million in revenue through the end of June. That's about 15 percent short the city's original projection of $46 million, and just under its revised estimate of $39.7 million.

A new study from market research firm Catalina found people in Philadelphia are still buying sugary drinks, but they're traveling outside city limits to stock up.

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Sales of carbonated soft drinks, the largest sweetened beverage category, fell 55 percent inside the city. Just outside it, sales rose 38 percent. Energy drinks, sports drinks, ready-to-drink coffee and tea and refrigerated juice drinks have all seen similar trends.

The city says it is too soon to judge the tax. It partially blamed the shortfall on retailers stocking up on products before the tax went into effect, said Mike Dunn, a spokesman for the city. Soda sales are also seasonal, he said, and current results only represent the first half of the year.

Catalina's study analyzed 109 million transactions at sales at grocery, mass and drug stores around Philadelphia. Dunn cautioned that supermarkets account for less than half of beverage sales in Philadelphia. He said the city also expected some people to initially drive to the suburbs then change their mind.

"We remain confident that the beverage tax is and will remain a reliable source of revenue, to the benefit of thousands of Philadelphian families and children," Dunn said. "This confidence is based on the results so far — nearly $40 million raised in the first six months of a brand new tax."

The tax has seemed to encourage people to drink more water. Sales of bottled water within the city core have increased 13 percent, Catalina found. Inside the city lines, sales grew nearly 9 percent.

The city expected distributors and retailers to recoup some of the "claimed losses" through such substitution, Dunn said. Still, businesses have condemned the tax. Groups like Ax The Bev Tax have been outspoken about their disdain for the tax and their efforts to get it repealed.

Philadelphia's sales tax has been closely watched because it was the first enacted in a major city. Berkeley, California, had passed a similar tax beforehand. Since then, five other cities and one county have voted to introduce similar measures.The county is Cook County, Illinois, which includes Chicago.

"pre-k"

taxpayer funded day care and make work for otherwise worthless people.

More subsidies for the single moms out there.

Why is the same information posted three times in OP's "summary?"

How does it work with EBT ?

Surprise, surprise...

That's racist. I think. Or homophobic.

40 million dollars the people gave to the government.

We are screwed.


ETA-as time goes on and the memory fades,people will just pay the tax and buy soda in the city limits.
The amount of money they collect will increase.

Still brought in almost $40 million, not exactly a failure

I wasnt aware that drinking soda was a seasonal thing, everyone i know who drinks it does it year round

I would never buy another soft drink again if I lived there.

They are running commercials about how much of a success the soda tax has been.  Paid for by Bloomberg.

I bet their next step is to raise the tax rate to hit that goal. Plus make it illegal to bring untaxed soda into the city.

Better to tax soda than taxing work.

I see a special Anti Soda Bootlegging unit coming to Philly PD soon.

Pick up that can... and by the way, what's in it?

I feex Deez!

Sunday football?

It's for the children. They obviously need to raise the tax.

If I had to guess, the spring and summer are peak seasons. You don't see many people buying a bucket of cola at the gas station in the winter.

Where's the Tea Party?

Fat tax!

Like people selling "loosies" (single cigarettes) in NY,you'll be able to buy just one can out of a 24 pack.

Skirting any tax is frowned upon by the government.

I dont see how people can fall for the idea it was designed to raise revenue.

Its purpose was to keep fat lazy people from becoming fatter lazy people, similar to the cigarette tax meant to keep people from smoking.

Yep,just like the Seattle "gun violence tax" is only to prevent,well,gun violence.

https://www.ar15.com/forums/t_1_5/2026082_Seattle-Council-Candidate-Grant-Wants-to-Double-Gun-Violence-Tax-.html&page=1&anc=67738252#i67738252


Senator moynihan back in NY years ago used to put forward a 1000% tax on ammo every year to go towards stopping gun violence.

I can see that happening when the dems get back in power.....

This is also their goal. 

It's a win all around for them, no matter what you do. 

No, not really.

The two I mentioned are meant to help people, your example is purely political pandering to their base.

So it's OK for the gov to tax things it doesn't like or thinks will help people?

Do you not see the issue with that?

Get a printing press tax started,

They are taxing it per ounce.

Well what did they expect?  They created a "sin tax" on sodas & sugary drinks, and ... people apparently cut back consuming them.

The problem with using taxes as behavior modification is exactly that... sometimes it works.  And when the government really wants the money more than the behavior modification - well be careful what you wish for, no?

The goal of a Pigovian tax is to disincentivize something that has costly externalities. In this case diabetes and heart disease. Tax avoidance in this context is a good thing.

But they didn't stop taxing work.

Don't expect Democrats to stop taxing work. They still dream of a world without it.

At $40 million it will not be repealed. Just like here in Ga. the Republicans saw how much money toll roads brought in so they are building them as fast as possible. Government loves taxes and that is both parties.

I say they need to implement road check points leading back into the city

this way they can fine and or imprison the people that smuggle in the soda

LOL....no.

It was a major Thank You to the teachers unions, a smaller one for building trades, and a big fat funding source for the city pension/benefits hole.

Besides a few people trying to cover up the pension/benefit thing, nobody tried to sell the health angle, as nobody believed it.

It's a success for the surrounding areas that got all the extra sales.

They claim they brought in $40M from this tax.
They forgot to mention how much regular sales tax they lost from people shopping outside the city (not only do they lose the soda revenue, they lose regular sales too - if I have to go buy a product somewhere else because it's cheaper, I'll do all my shopping while I'm there...)

Prohibition!

My brother is a butcher in a grocery store just over the Philadelphia border.  Their sales have gone up over 50% since the tax has gone into place. It has definitely had an impact on the stores just outside of the city limits.  He gets at least one day of overtime a week, sometimes he has to work every day.  He worked there before the soda tax and they had gotten by with two butchers and a meat manager who occasionally cut meat.  They hired another butcher and an apprentice to help out and they are still not able to keep up even with the manager cutting as well.  He told me a story about a customer who comes in every day and buys two shopping carts full of soda.  They think he owns one of those corner stores and sells it tax free but no one really asks. I know someone asked about EBT. I am pretty sure that he mentioned that they are not charged the tax on the soda when bought with EBT.

I just wonder how much of the out of city punches were nott EBT vs in city purchases.  I am  assuming EBT buyers stayed in city since they are less price sensitive since it is free Money.

But if we could save just one child.

That is what Chicago is trying to figure out before federal funds are yanked.

proof-reading is for suckers

True. But most will read the headlines and look at the peektures, then reply.

So if it's meant to help people then they also removed those items from the approved EBT list?  


Yeah, whatever.  

Everything can be free if we all just get together and make it happen!

I'd bet even money that they still tax diet soda. 

That's pretty fucked up if true. But I guess no harder to believe than the stupid tax is to begin with

Growing the D voting base, 1 generation at a time.

They do. The tax includes sugard soda, diet soda, and, I believe, juice and 'Kool Aid' type beverages.