Soft-drink tax on hold in Chicago — for now

Store owners, bottlers warn of lower sales, layoffs

“Every time one of these is challenged, politically it’s important because the soda companies try to prevent any municipalities from enacting this.” Bruce Ledewitz, a Duquesne University law professor

Chicagoans are getting a break when it comes to paying a soft-drink tax — but it may not last.

A penny-an-ounce soda pop tax was slated to take effect on July 1, but its imposition was put off by a local judge after the state retail merchants association and a group of local grocers challenged its legality. Tuesday, the judge is expected to set a date for a hearing. The county that’s home to Chicago is one of about a dozen areas around the nation that have instituted a soft-drink tax. These taxes began after the outcry of concern about health effects from consumption of sugary drinks.

Seattle was the most recent, and now Massachusetts is considering becoming the first state to enact one. Philadelphia’s soda tax, which began on January 1, was challenged in state court, but tax opponents failed, and it went into effect.

That makes Chicago the latest testing battleground for the controversial levy.

“Every time one of these is challenged, politically it’s important because the soda companies try to prevent any municipalities from enacting this,” said Bruce Ledewitz, a Duquesne University law professor.

The coalition that has formed to oppose the Chicagoarea tax poses arguments that have become familiar in other cities. Opponents say it violates the Illinois constitution by failing to apply the tax evenly, because some beverages are exempt. For example, the tax there would not apply to sweetened beverages made by hand, such as those at a coffee shop.

Local store owners, soda pop companies and bottlers worry about whether the taxes will drive down sales. Beverage manufacturers have warned of layoffs at factories and trimming drivers’ routes.

Shanin Specter, a lawyer for opponents to Philadelphia’s tax, said his clients plan to file a petition requesting review by the Pennsylvania Supreme Court this week.