Beverages

Court Battle Looms Over Soda Tax

Retail association requests injunction to halt implementation

UPDATE: A Cook County judge again delayed a decision on the beverage tax the evening of June 29. A ruling is now expected the afternoon of Friday, June 30.

CHICAGO -- A decision in Cook County, Ill., that would institute a 1-cent-per-ounce tax on sweetened beverages may come down to the last minute as an emergency hearing on the issue was postponed to the afternoon of June 29. The tax is scheduled to begin Saturday, July 1.

Cook County Circuit Judge James McGing on June 28 recused himself from the case without giving a reason in court, according to a Chicago Tribune report.

The hearing comes on the heels of the Illinois Retail Merchants Association and a group of grocers filing a last-minute lawsuit June 27 seeking to block the tax on soda and other sweetened beverages. They argue that the tax is unconstitutional and too vague to enforce.

"The sweetened-beverage tax creates classifications of taxable sweetened beverages that violate the uniformity clause of the state’s constitution, which requires taxing bodies to draw reasonable classes of taxable categories and imposes a uniform tax within the classes," the group said. "Specifically, the ordinance taxes ready-to-drink, premade sweetened beverages, but generally excludes sweetened beverages made on demand. Not only are these sweetened beverages the same other than how they are served, but when considering the purpose of the ordinance—to promote public health and decrease obesity rates—the classification bears no reasonable relationship to accomplishing those goals.”

In the meantime, retailers and restaurants across Cook County, which includes Chicago, have placed signage around and near their beverage shelves and fountains, alerting consumers to the coming tax.

The penny-per-ounce tax would add 72 cents to the cost of a six-pack of soda or 68 cents for a 2-liter bottle. Fountain drinks would also be taxed, making a 32-ounce soda, priced 99 cents on McDonald's menus, for example, cost $1.42 or more with other county and city taxes.

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