Philadelphia's beverage tax brings in $6.4M in February

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Thursday, March 23, 2017
Beverages are displayed at a demonstration against a proposed sugary drinks tax Wednesday, May 4, 2016, outside City Hall in Philadelphia.

PHILADELPHIA -- Philadelphia's new tax on sweetened beverages is slightly exceeding expectations.

Figures released Thursday by the city's Department of Revenue show the tax brought in $6.4 million in February. The city had projected the tax would generate $6.3 million for the month.

The 1.5-cent-per-ounce tax on sweetened and diet beverages funds pre-K and community schools. It also will help pay to renovate recreation centers, libraries and parks.

The tax generated $5.9 million in January, more than double its prediction of $2.3 million.

The tax is imposed at the distributor level. If fully passed onto the consumer, it amounts to $1.44 on a six-pack of 16 ounce bottles.

Pepsi is pulling 2-liter bottles and 12-packs of its products from Philadelphia stores to offer products and sizes that working families can better afford.


The Associated Press has corrected this story to show the city's projection for February was $6.3 million, not $5.9 million.