Philadelphia becomes 1st major American city with soda tax

PHILADELPHIA (AP) — Philadelphia became the first major American city with a soda tax today despite a multimillion-dollar campaign by the beverage industry to block it.

City council gave final approval to a 1.5 cent-per-ounce tax on sugary and diet beverages.

Only Berkeley, Calif., had a similar law. Soda-tax proposals have failed in more than 30 cities and states in recent years. Such plans are typically criticized as disproportionately affecting the poor, who are more likely to consume sugary drinks.

But Democratic Mayor Jim Kenney sold the council on the idea with a plan to spend most of the estimated $90 million in new tax revenue next year to pay for prekindergarten, community schools and recreation centers.

"Thanks to the tireless advocacy of educators, parents, rec center volunteers and so many others, Philadelphia made a historic investment in our neighborhoods and in our education system today," the mayor said after the vote.

The tax, which passed 13-4, is a hard-fought win for the city. The soda industry spent millions of dollars in advertising against the proposal, arguing the tax would be costly to consumers.

The plan also attracted national attention and dollars, with former New York Mayor Michael Bloomberg and Texas billionaires John and Laura Arnold, advocates for less consumption of sugary drinks, funding ads in support.