What Businesses Must Know About The Berkeley 'Sugar Tax'

Law360, New York (December 1, 2014, 10:10 AM EST) -- According to its backers, the Berkeley, California, “sugar tax” is the future of sugar in America. Berkeley’s Measure “D,” which garnered an overwhelming 75 percent “yes” vote, imposes a general excise tax of $0.01 per ounce on the distribution of sugar-sweetened beverages and the sweeteners used to sweeten such drinks: this amounts to a 12 cent tax on a standard 12 ounce can of soda. The ordinance takes effect on Jan. 1, 2015.

The stated purpose of the tax is to “diminish the human and economic costs of diseases associated with the consumption of sugary drinks by discouraging their distribution and...

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