• soft drinks

Philadelphia City has the right to charge its 1.5-cents-per-ounce levy on sweetened beverages

Philadelphia City, the nation's largest city with a soda tax, has the right to charge its 1.5-cents-per-ounce levy on sweetened beverages, the state Supreme Court ruled in a defeat for retailers and distributors.

The Philadelphia version of the tax was designed to help fund pre-kindergarten programs, parks and other services. It raised $79 million last year, but the impact on the cost of soda was large. The tax adds about $1 to the cost of a soda 2-liter bottle. A 12-pack of sodas went up $2.16.

Simplify sales tax compliance in all 50 states with Avior Data automated tax compliance software. Learn how it works.