Could a new tax on sugary drinks come to MD?

MARYLAND – The state of Maryland is looking to sweeten its tax revenue thanks to a proposed tax on sugary drinks, syrups and powders.

If HB 1469 is passed, the state of Maryland would be the first in the nation to impose a 2 cents per ounce tax on sugary drinks, syrups and powders.

“I don’t think that’s right. Because that’s too much. Sodas are already overpriced as it is, they’ve really increased the last couple years,” said Katherine Levin.

“I would agree to that because I think soda is not healthy for the human body, you should reduce the amount of sugar you get in,” said Horst Fuhrmann.

“The question is who would benefit and why?” said Kathy Kirtland.

The tax is projected to raise 500 million dollars annually and would be used toward a fund for free school meals, child care subsidies and the state’s general fund.

“If you break down what they are trying to do based the sale price of items, you’re looking at a lot of times more than 10 percent tax, which is higher than our alcohol tax, which is higher than our sales and use tax, it’s crazy,” said Jeremy Norton with Roadie Joe’s.

Jeremy Norton with Roadie Joe’s is against seeing more taxes. Currently, a 16 oz soda is $3.45 after tax at his establishment.

“If they add an additional 2 cents per ounce tax, that’s an additional 32 cents on top of all that, so you’re looking at almost four dollars for a soda, while here we do give free refills, your gas stations, other places don’t do that, so it’s an incredibly expensive tax,” said Norton.

The proposed bill would be aimed at distributors of sweetened drinks including those with artificial substitutes.

Sodas, sports drinks and energy drinks would all fall under the tax, but not natural fruit and vegetable juice, milk or baby formula.

“Ultimately I think we’d be okay,” said Norton, “but I think it will make people think twice about ordering sodas and they’ll get water instead.”

The bill would go into effect on July 1 if passed.

The tax rate would also increase two years from then and each year after that based on inflation.

The cities of Philadelphia, Seattle, Boulder, Colorado and Berkeley California all have similar laws in place.