The city of Berkeley, California passed a one cent per ounce soda tax in two thousand fourteen. Soda, energy drinks, juice with added sugar, and syrups are charged one cent per fluid ounce. Of course this government bureaucracy keeps those tax proceeds.
Berkeley claims that this is not a tax on consumers. Distribution companies are required to pay this tax each month. A University of North Carolina study claims that soda sales have dropped significantly in Berkeley, California.
Bottled water sales increased. Sales of sugar based drinks dropped 9.6 percent. Bottled water sales increased 15.6 percent. Beverage sales that were not taxed increased by 3.5 percent.
Not all distribution companies and retailers may have passed on this increased tax to their customers. A twelve ounce of soda would have increased twelve cents. Aloholic drinks and others with no significant amount of sugar, did not receive this additional tax.