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Issue Date: Vol. 53, No. 4, April 2013, Posted On: 4/9/2013

Texas State Senator Lucio Proposes Tax On Soft Drink Manufacturers

Tim Sanford
TAGS: vending, vending machine, soda machine, Sen. Eddie Lucio, Jr., Brownsville TX, Texas soft drink tax, Senate Bill 493, Government Effectiveness and Efficiency Report, Rudd Center for Food Policy

AUSTIN, TX -- Sen. Eddie Lucio, Jr. (D-Brownsville) has filed a bill that would impose a 1¢ per fl.oz. tax on producers of soft drinks. Titled Senate Bill 493, the measure is similar to one introduced by Lucio in 2011, but differs in levying the tax on the manufacturer of the product, not the consumer, to simplify collection.

According to the senator, the legislation "would help fight obesity, while also increasing revenue to the state." It has been referred to the Senate Finance Committee.

Sen. Lucio explained that the version of the bill introduced this year was recommended by the 2013 "Government Effectiveness and Efficiency Report," a publication of the nonpartisan Legislative Budget Board. LBB is a state agency formed to assist in the budget-writing process for each Legislative Session, and to identify budget inefficiencies and suggest solutions. GEER suggested collecting the tax from manufacturers rather than consumers.

He added that, according to the Rudd Center for Food Policy, the state could generate $1.1 billion in 2014 and 2015 by imposing the new tax.

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