PHILADELPHIA _ The Pennsylvania Supreme Court said Tuesday it will consider the legality of Philadelphia's tax on soda and other sweetened beverages.
The court said it would hear the American Beverage Association's appeal of a Commonwealth Court decision last year to uphold the tax.
Justices will consider weigh whether the 1.5-cents-per-ounce levy amounts to a double tax. Pennsylvania law prohibits the city from imposing a tax on something already taxed by the state. The tax is levied on distributors, but lawyers representing the beverage industry and local retailers argued that the levy is being passed on to consumers, who already pay sales tax.
Shanin Specter, a lawyer representing the American Beverage Association, said he was pleased with the court's decision to consider the tax.
"While the city of Philadelphia has opposed Supreme Court review, it is evident that the tax poses significant legal issues," he said in a statement Tuesday. "All parties to this case _ as well as local governments, businesses, and consumers across the Commonwealth _ will benefit from the court's assessment of state versus local authority in taxation."
Philadelphia City Solicitor Sozi Pedro Tulante, meanwhile, said he was not surprised by the court's action.
"Our confidence in the City's authority to impose the tax has not wavered, and we welcome the Justices' thorough review of the Commonwealth Court's decision that confirmed the legality of the tax," he said in a statement. "Ultimately, we look forward to the day when the City can begin full implementation of the essential programs funded by the tax ... to the benefit of tens of thousands of Philadelphia children and families."
The tax _ the first of its kind in a major U.S. city _ went into effect at the beginning of 2017 and is used primarily to fund pre-K, community schools, and improvements to parks and recreation centers. It raised $78.8 million in its first calendar year, falling short of projections. The city projects the tax to bring in $92 million in fiscal year 2018, which ends in July, but monthly revenues have fallen short of the average needed to reach that goal.
No hearing date or timeline was set in court orders Tuesday.
