SF: Sugary drink tax measure fails
Proposition E, a 2 cent per ounce tax on the purchase of sugary beverages that was heavily opposed by the American Beverage Association, was defeated at the polls Tuesday when fewer than two-thirds of voters supported the proposal.
The tax was proposed to combat health-related illnesses like obesity and diabetes. It drew the support of the majority of the Board of Supervisors, which voted to place it on the ballot, and a number of health organizations, such as the American Heart Association and the California Dental Association.
The American Beverage Association, which represents the large soda companies, had raised $7.7 million as of Sept. 30 to oppose the measure. The group's campaign had seized upon San Francisco's rising cost of living and growing income inequality, and had suggested in ads that the tax would increase the cost of groceries and meals at restaurants.
It is estimated that San Francisco consumes about 3 billion ounces of soda and other sugary beverages annually and that a 2 cent per ounce tax would decrease consumption by as much as 31 percent, according to a City Controller's Office report. Estimates said the tax could generate as much as $54 million a year.
http://www.sfexaminer.com/sanfrancisco/sugary-drink-tax-measure-fails/Content?oid=2911239
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