2H imposes a tax of 2 cents per fluid ounce on the distributor of most drinks sweetened with sugar or corn syrup -- defined as containing at least 5 grams of added “caloric sweetener” per 12 fluid ounces. Such a can of Coca-Cola would cost the consumer 24 cents more if the tax gets passed on. Beverages without added sugar such as pure juice or a juice mix such as Boulder’s own Izze would not be taxed.
If there is a chain of distribution in the city of Boulder, the tax would only be imposed on the first distributor.
The listed exceptions to the tax are separate sweeteners sold in grocery stores and sugar-sweetened milk products, baby formula, alcohol, and drinks consumed for medical reasons, such as cough syrup.
The tax revenues would be earmarked for administration of the tax and for health and wellness programs. City staff would produce an annual report of how the tax revenue is spent.
Recommendation: leaning for the measure
Taxes have an influence on behavior. Boulder has a reputation as a very fit town, and we can help to make it easier for people to avoid sugary drinks (while increasing our reputation as a nanny-state). Opponents argue that the increased cost for sugary drinks could be spread out among all the items in a grocery store or restaurant so that the tax wouldn’t end up having an impact on behavior, but I don’t think all businesses could do that. Bigger stores and restaurants would likely be able to bear the tax burden more easily than smaller businesses.
The bureaucracy to collect an imposed tax is unavoidable, but additional bureaucracy could have been eliminated by having the revenue go into the general fund. I appreciate the fact that 2H proposes an amendment to the Boulder Revised Code and is not adding language to the City Charter. Presumably, the city council could redirect tax revenue to the general fund sometime in the future.
Many sugar-sweetened drinks have a long shelf life so Boulder residents may be inclined to stock up on soft drinks when they are out of town. Boulder consumers would not be able to avoid the tax increase in restaurants.
Website for the Yes Side (Healthy Boulder Kids)
http://healthyboulderkids.org/
Website for the No Side (Stop the Beverage and Grocery Tax)
http://nobouldergrocerytax.org/faq.aspx
Approved Ballot Language
CITY OF BOULDER BALLOT ISSUE 2H SUGAR SWEETENED BEVERAGE PRODUCT DISTRIBUTION TAX
Shall City of Boulder taxes be increased $3.8 million (first full fiscal year increase) annually by imposing an excise tax of 2 cents per ounce on the first distributor in any chain of distribution of drinks with added sugar, and sweeteners used to produce such drinks, exempting: (1) sweeteners sold separately to the consumer at a grocery store; (2) milk products; (3) baby formula; (4) alcohol; and (5) drinks taken for medical reasons; and in connection therewith, shall all of the revenues collected be used to fund: the administrative cost of the tax, and thereafter for health promotion, general wellness programs and chronic disease prevention in the City of Boulder that improve health equity, such as access to safe and clean drinking water, healthy foods, nutrition and food education, physical activity, other health programs especially for residents with low income and those most affected by chronic disease linked to sugary drink consumption, all effective July 1, 2017, and in connection therewith, shall the full proceeds of such taxes at such rates and any earnings thereon be collected, retained, and spent, as a voter- approved revenue change without limitation or condition, and without limiting the collection, retention, or spending of any other revenues or funds by the City of Boulder under Article X Section 20 of the Colorado constitution or any other law?
FOR THE MEASURE____
AGAINST THE MEASURE____
See Ordinance No. 8130 to put Issue 2H on the ballot.
https://documents.bouldercolorado.gov/weblink8/0/doc/136931/Electronic.aspx
If there is a chain of distribution in the city of Boulder, the tax would only be imposed on the first distributor.
The listed exceptions to the tax are separate sweeteners sold in grocery stores and sugar-sweetened milk products, baby formula, alcohol, and drinks consumed for medical reasons, such as cough syrup.
The tax revenues would be earmarked for administration of the tax and for health and wellness programs. City staff would produce an annual report of how the tax revenue is spent.
Recommendation: leaning for the measure
Taxes have an influence on behavior. Boulder has a reputation as a very fit town, and we can help to make it easier for people to avoid sugary drinks (while increasing our reputation as a nanny-state). Opponents argue that the increased cost for sugary drinks could be spread out among all the items in a grocery store or restaurant so that the tax wouldn’t end up having an impact on behavior, but I don’t think all businesses could do that. Bigger stores and restaurants would likely be able to bear the tax burden more easily than smaller businesses.
The bureaucracy to collect an imposed tax is unavoidable, but additional bureaucracy could have been eliminated by having the revenue go into the general fund. I appreciate the fact that 2H proposes an amendment to the Boulder Revised Code and is not adding language to the City Charter. Presumably, the city council could redirect tax revenue to the general fund sometime in the future.
Many sugar-sweetened drinks have a long shelf life so Boulder residents may be inclined to stock up on soft drinks when they are out of town. Boulder consumers would not be able to avoid the tax increase in restaurants.
Website for the Yes Side (Healthy Boulder Kids)
http://healthyboulderkids.org/
Website for the No Side (Stop the Beverage and Grocery Tax)
http://nobouldergrocerytax.org/faq.aspx
Approved Ballot Language
CITY OF BOULDER BALLOT ISSUE 2H SUGAR SWEETENED BEVERAGE PRODUCT DISTRIBUTION TAX
Shall City of Boulder taxes be increased $3.8 million (first full fiscal year increase) annually by imposing an excise tax of 2 cents per ounce on the first distributor in any chain of distribution of drinks with added sugar, and sweeteners used to produce such drinks, exempting: (1) sweeteners sold separately to the consumer at a grocery store; (2) milk products; (3) baby formula; (4) alcohol; and (5) drinks taken for medical reasons; and in connection therewith, shall all of the revenues collected be used to fund: the administrative cost of the tax, and thereafter for health promotion, general wellness programs and chronic disease prevention in the City of Boulder that improve health equity, such as access to safe and clean drinking water, healthy foods, nutrition and food education, physical activity, other health programs especially for residents with low income and those most affected by chronic disease linked to sugary drink consumption, all effective July 1, 2017, and in connection therewith, shall the full proceeds of such taxes at such rates and any earnings thereon be collected, retained, and spent, as a voter- approved revenue change without limitation or condition, and without limiting the collection, retention, or spending of any other revenues or funds by the City of Boulder under Article X Section 20 of the Colorado constitution or any other law?
FOR THE MEASURE____
AGAINST THE MEASURE____
See Ordinance No. 8130 to put Issue 2H on the ballot.
https://documents.bouldercolorado.gov/weblink8/0/doc/136931/Electronic.aspx
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