Tax & Accounting Blog

Nationwide Tax on Sugary Drinks

Indirect Tax, ONESOURCE, Sales and Use Tax January 25, 2012

A hot topic as of late, a penny-per-ounce excise tax on sugary beverages such as soda is being tossed around in legislative sessions.  This would be a tax on the front end, when the beverage is produced, unlike a sales tax when the consumer pays at the counter.  In any case, the price on these types of beverages would increase, however, supporters of the tax are making the argument that it will help to reduce consumption and save billions in medical costs each year that drinking these beverages may cause.  The statistics are still up for debate, but what is for certain is that 40 states currently have a tax on soda’s, California being the highest at 7.3%.