The American Beverage Association, supported by grocers and restaurant owners, has filed a lawsuit against Santa Cruz, claiming the newly enacted sugar-sweetened beverage tax contravenes state law and the California Constitution. The tax imposes a two cents per fluid ounce charge on distributors of sugary drinks and is projected to raise about $1.3 million for the city. Plaintiffs argue it unfairly impacts small businesses already struggling with inflation and costs. The tax was recently approved by city voters, prompting officials to defend its legality.
The city's sugar-sweetened beverage tax conflicts with state law and violates the California Constitution, as per the lawsuit filed by the American Beverage Association.
The tax, which charges two cents per fluid ounce of sugar-sweetened beverages, aims to generate approximately $1.3 million annually for the city but has faced legal challenges.
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