Beverage Tax Proposed in Rhode Island and Vermont

A group of Rhode Island legislators has proposed a bill that would impose a statewide penny-per-ounce tax on sugar-sweetened beverages. More specifically, the tax would apply to “any nonalcoholic beverage, whether naturally or artificially flavored, whether carbonated or noncarbonated, sold for human consumption, containing sugar, corn syrup or any other high-calorie sweetener, including, but not limited to, cola and other flavored drinks, and all other drinks and beverages commonly referred to as ‘soft drinks,’ ‘sodas,’ ‘sports drinks’ or ‘energy drinks.’”

Exemptions to the tax would include 100 percent fruit and vegetable juices,
infant formula and milk products. Products intended by manufacturers for use
as dietary supplements or for weight-reduction aids would be exempt as well.

Meanwhile, Vermont lawmakers have proposed a similar bill that would
impose a penny-per-ounce tax on the sale of beverages containing added
sugar or high-fructose corn syrup. Fifty percent of the revenues generated
would be directed to the State Health Care Resources Fund, while the other
half would evidently subsidize the Vermont Healthy Weight Initiative. See
BurlingtonFreePress.com, February 6, 2013.