Possible Taxation on Colas Creating War With Washington







26 May 2010 | posted by: Dina Ryder | No Comment

Coca ColaIn the 2011 budget, Council Chairperson Gray has included another form to the cola tax. The beverages with artificial and natural sweeteners and all sodas could impose a 6% sales tax in the city. These beverages are considered grocery items and are tax exempt.

Last week, Mr. Gray cancelled the original proposal. That proposal had called for a tax on colas, excluding diet sodas, based on the ounce. The proposal was to fund a requirement that schools serve students more vegetables and fruits.

The Washington Post is stating this new proposal would produce around six and half million dollars for the schools and more than one million dollars would go toward the general fund. This would include all soft drinks and sports and energy drinks. Drinks like coffee, tea, milk, water, or fruit juice would not be taxed.

On Wednesday, the Council gave an approval for the budget including the taxes on drinks.

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