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Santa Cruz, California, is taking a bold stand for public healthdespite state restrictions and opposition to the beverage industry.
Last week, the coastal city enacted a 2-cent-per-ounce tax on sugary drinks, including sodas and iced teas. Approved by voters in November 2024, the tax is projected to raise $1.3 million annually for city health and wellness programs.
Health advocates say the policy is a crucial step in curbing the rise of obesity, heart disease, and Type 2 diabetes. “The average American consumes a bathtub full of sugar from sugary drinks annually,” said Blythe Young of the American Heart Association, a key supporter of the initiative.
A Legal Grey Zone
Despite voter support, Santa Cruz’s tax defies a 2018 California state law prohibiting new local groceries taxes until 2030. That law struck in a controversial deal between lawmakers and the beverage industry threatened to withhold sales tax revenue from cities enacting new grocery taxes, even if courts deemed them legal.
However, in 2023, a state appeals court ruled the withholding provision unconstitutional, effectively removing the primary enforcement mechanism. That opened the door for charter cities like Santa Cruz and granted more autonomy under California’s constitution to resume efforts to regulate sugary beverages.
Industry Pushback
The American Beverage Association condemned the tax, calling it “an unfair burden on working families” and signaling a possible legal challenge. But city officials are undeterred.
“We’re ready for that,” said Vice Mayor Shebreh Kalantari-Johnson. “People with money or special interests should not dictate how a city makes decisions.”
National Implications
Santa Cruz’s move could reignite national debates over local autonomy and public health. With other cities pursuing independent policies on housing, elections, and even book bans, the sugary beverage tax fight fuels the broader movement of municipal defiance.
While the outcome remains uncertain, Santa Cruz has made its position clear: public health over profit.
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