It Lives: Paterson’s Soda Tax Is Now a Modified Sugar-Sweetened Beverage Tax


In March, Governor Paterson announced plans to ditch his soda tax, thanks to $1.3 billion of federal stimulus money. But the soda tax is apparently still alive and well, and living under an assumed name: It’s now called the modified sugar-sweetened beverage tax.

According to the governor’s website, the “revised sugar sweetened tax package” includes:

The same sugar sweetened beverage (SSB) tax as proposed in the 2010-11 Executive Budget. This included an excise tax of $7.68 per gallon for beverage syrups or simple syrups, and $1.28 per gallon for bottled soft drinks, powders or base product (which equates to approximately one penny per ounce).

But! There will no longer be a tax on low-calorie soda and bottled water. And “the State and local sales tax base” will also now include bottled coffee and teas if they weigh in at more than 10 calories per eight ounces.

Wonder what Coke and Pepsi have to say about that?