Philadelphia's soda tax went into effect this week, catching many consumers by surprise despite being passed months ago after a long debate by city council. It more than doubles the price of some beverages.
The new law slaps a 1.5-cent tax on every ounce of sugary beverages, including diet drinks, reported Philly.com. While the city issued the tax at the distributor level, it was always expected that it would be passed along to the purchasers.
"When I read the receipt I'm like, 'Wait a minute. I paid more in tax than I did for the product,'" Chuck Andrews told WPVI-TV after noticing that he was charged $1.92 in taxes for a gallon of tea that retailed for $1.77.
WPVI-TV reported that Acme has included the cost of the tax in its retail price, increasing the price of a 20-ounce can of soda to $2.18 from $1.88. ShopRite, though, decided to use a shelf tag to show the untaxed price of the drink and the tax on a separate tag.
Philadelphia magazine said soda lobbyists spent more than $10 million to defeat the tax and then attempted to sue the city after it was passed. A Common Pleas Court judge last month dismissed the lawsuit filed by the American Beverage Association in as a last-ditch effort the kill it.
Despite the high-profile fight against the tax, consumers went on social media to complain about the measure this week.
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