Tax & Accounting Blog

Hawaii Considers Taxing Soda

Indirect Tax, Sales and Use Tax April 7, 2011

Following a state Senate Health Committee meeting with physicians regarding the health effects of sweetened beverages some officials are entertaining the idea of taxing sodas. State Governor Neil Abercrombie had proposed a tax early in 2011 that would have levied a 25 cent fee on containers larger than 12 ounces and a 10 cent fee on smaller containers, yet the proposal failed to gain much momentum. Hawaii is currently facing a significant budget shortfall, suggested to be pushing $1 billion by 2013. Officials might look to a soda tax to garner revenues moving forward.