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 5ยข 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
