The City of Philadelphia’s Sugar Sweetened Beverage Tax became effective January 1, 2017. This is the first “soda” tax passed by a major city. The City passed the tax, estimated to generate over $90 million annually, in an effort to provide additional funding to schools, parks, recreation centers, and libraries.
The new law defines two groups that will be impacted from the tax. Specifically Distributors and Dealers. A Distributor is any person who supplies sugar-sweetened beverage to a dealer. A Dealer is any person engaged in the business of selling sugar-sweetened beverage for retail sale in the City, including but not limited to restaurants, retail stores, street vendors, owners and operators of vending machines, and distributors who engage in retail sales.