Local Taxes on Sugar-Sweetened Beverages in California

Local Taxes on Sugar-Sweetened Beverages in California

Legal Considerations and Procedural Requirements

Many cities and counties in California are interested in imposing a tax on products such as soda and other sugar-sweetened beverages – a policy strategy that could discourage consumption of the product and provide a dedicated source of revenue for local public health programs.

In California, a community’s only viable option is to pass a business license tax, which would be imposed on distributors and retailers doing business in that city or county.

The legal memo takes an in depth look at some of the considerations and procedural requirements involved, while the fact sheet offers an introductory overview of the issues.