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Issue Date: Vol. 50, No. 2, February 2010, Posted On: 1/22/2010

NY Governor's Proposed Soda Tax Returns In 2011 Budget

Emily Jed
vending, vending machine, vending operator, vending business, soda tax, New York tax, David Paterson, tax hike, automatic retailing

ALBANY, NY-- New York's operators and vending machine patrons escaped Gov. David Paterson's proposed soda tax last year, but it's back on the table in the state's $136 billion 2011 budget he unveiled on Tuesday.

As part of his plan to close the state's $7.4 billion deficit, the governor proposed raising $1.1 billion by hiking taxes and fees, including a penny-per-ounce tax on nondiet soft drinks and a $1-per-pack cigarette tax.

Paterson justified the soda tax and cigarette tax hike by pointing out that the state spends $16 billion a year on healthcare for smokers and people with obesity- related diseases. The tax on nondiet drinks, which he says contribute to obesity, would generate an estimated $404 million a year. Milk, juice, diet soda and bottled water would be exempt under the proposal.

Lawmakers rejected Paterson's soda tax last year, but signed into law his proposal to expand New York's bottle deposit bill to impose a 5¢ deposit on bottled-water containers smaller than 1 gallon. That law went into effect last November.

See related 2009 stories:

New York Trade Escapes 'Obesity' And 'Entertainment' Taxes; $1.50 Exemption Progresses

New York Strikes Down Vending Tax Exemption Bill

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