Another city is looking to follow the example of Philadelphia by imposing a soda tax on sugary beverages that critics argue will cause massive price spikes for consumers.
Santa Fe Mayor Javier Gonzales announced plans Wednesday evening at a city council meeting to implement a two cent per ounce tax on all sugary beverages. Revenue generated from the tax will go to fund the city’s early childhood education programs, but a think tank critical of the proposal called Gonzales’s claim it will pull in $10 million in annual revenue a “fantasy.” Gonzales is calling on the council to pass an ordinance establishing a special election for residents to vote on the tax, reports Santa Fe New Mexican.
Councilor Carmichael Dominguez said he is already receiving a flood of calls from business owners in the city who are concerned over the financial impact of such a policy. Specifics of the tax are largely unknown, but the mayor plans to illuminate the issue during a town hall Saturday.
“From the outset, Mayor Gonzales has desired more taxes to fuel more government spending,” Paul Gessing, president of the Rio Grande Foundation, a free market think tank, said in a statement. “Our analysis exposes the absurdity of him using tax hikes to masquerade as a public health crusader. Santa Fe city councilors should reject this proposal and say ‘No Taxation on Carbonation.'”
Local businesses are reportedly concerned it will put another onerous financial burden on stores. The tax would be a half cent more expensive than the one implemented in Philadelphia. Many consumers are still in shock at price hikes across Philadelphia due to the city’s soda tax that took effect Jan. 1.
In response to a growing body of disgruntled residents, Mayor Jim Kenney continues to heap blame on businesses. Kenney, who led the charge for the passage of the tax, even accused retailers of stirring up resentment against the tax.
The Santa Fe council will hold a public hearing on the proposed soda tax March 8 and a vote could occur as early as May.
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