Sugary drink tax faces legal challenge from Beverage Association

The American Beverage Association and allies filed a lawsuit today in Sacramento Superior Court against the city of Santa Cruz, challenging the city's sugary drink tax. The two cents per fluid ounce tax on sugary beverages was approved by voters in November 2024 and went into effect May 1. Nancy Brown, CEO of the American Heart Association, the world's leading voluntary organization focused on heart and brain health, issued the following statement:

"Big Soda is once again grasping at straws. Let's remember how we got here. Back in 2018, stung by multiple losses at the ballot box, this self-serving industry secretly cut a deal that put a 12-year moratorium on sugary drink taxes, aiming to take away the ability of California cities and citizens to raise revenue for important community priorities and to help fight heart disease, stroke and type 2 diabetes.

"In 2023, the courts wisely found the penalty provision of the moratorium unconstitutional. Santa Cruz voters stood up for health and passed a sugary drink tax in November, but the beverage industry still won't accept the will of the people.

"The American Heart Association stands with the citizens of Santa Cruz and remains committed to curbing sugary drink consumption and protecting health. The beverage industry stands for profits over health and burdens consumers and taxpayers with billions in needless health care costs, illness and premature death.

"The backroom dealing was wrong in 2018 and it's wrong today. We call on Big Soda and its allies to stop with their lies and this costly litigation."

Provided by American Heart Association