Beverages

Cook County, Ill., Soda Tax Moves Forward

Retailer group reviewing options to continue legal fight

 

UPDATE: The Illinois Retail Merchants Association is appealing the recent court ruling that allowed Cook County's sweetened-beverage tax to go into effect on Aug. 2. "We filed an appeal on court's decision to grant Cook County's Motion to Dismiss Sweetened Bev Tax lawsuit," the association posted on Twitter. "Looking fwd to our day in court."

CHICAGO -- It's coming a month later than planned, but the 1-cent-per-ounce tax on sweetened beverages in Cook County, Ill., will begin Wednesday, Aug. 2, after a judge dismissed a lawsuit that challenged the tax as unconstitutional.

Cook County Circuit Court Judge Daniel Kubasiak ruled July 28 that the tax does not violate the state constitution.

"The court is not charged with evaluating the progressive or regressive nature of this tax, or any tax. ... Rather those determinations rest with economists, the county's elected officials and those who ultimately bear the effect of the tax," Kubasiak said, according to a report in the Chicago Tribune.

The tax will add 32 cents to the cost of 7-Eleven's Big Gulp drink, $1.02 to a 2-liter bottle of soda and $2.88 to a 24-pack case of 12-ounce cans, for example.

"I can only imagine the outrage that is being felt by consumers throughout Cook County who may soon have to pay this tax," Rob Karr, president and CEO of Illinois Retail Merchants Association (IRMA), said after the decision was announced. IRMA filed the lawsuit along with several grocery retailers. Karr said he is reviewing legal options to continue the fight against the tax.

The county had been expecting the tax, which was originally scheduled to be enforced beginning July 1, to bring in $67.5 million this year and $200.6 million in 2018.

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