State Legislatures and City Governments Are Going to Battle Over Food Taxes: New at Reason

The battle over local food and beverage taxes is heating up again.

Last week, Pennsylvania’s highest court upheld the legality of Philadelphia’s soda tax after a court challenge. Some believe the win by Philadelphia could embolden other cities in the state and around the country to pass new taxes.

But hold on, writes Baylen Linnekin.

Last month, California (California!) became the latest state to prohibit local governments from imposing new food or beverage taxes. While the law allows existing municipal taxes to stand, including a handful of soda taxes, the terms of the law mean that no city may adopt new food or beverage taxes until at least 2031. Arizona adopted a similar law earlier this year. Michigan did the same last year.

The push to eliminate local food and drink taxes are bubbling up thanks to consumers, the beverage industry, grocers, unions, and small businesses that are most impacted by these local taxes.

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