Santa Cruz has implemented a 2-cent-per-ounce tax on sugary drinks, becoming the first California city to do so since 2018. This move comes seven years after a state ban on local grocery taxes, resulting from a compromise with the beverage industry. The tax aims to reduce sugar consumption and fund health initiatives, amidst opposition from the American Beverage Association and local businesses, who claim it places undue burdens on economically struggling families. Santa Cruz officials plan to challenge the state's preemption law in court and hope to inspire other regions.
The 2-cent-per-ounce tax, approved by voters in November, is the first in California since a 2018 deal limited local grocery taxes due to beverage industry pressure.
Health advocates argue this tax will reduce sugar consumption, especially among children, while opponents warn it disproportionately affects low-income families and local businesses.
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