Authorizing the Committee on Labor to hold hearings exploring the Sugar-Sweetened Beverage Tax and its impact on Philadelphia businesses, trades, and consumers.

Authorizing the Committee on Labor to hold hearings exploring the Sugar-Sweetened Beverage Tax and its impact on Philadelphia businesses, trades, and consumers. WHEREAS, In 2017, the Council of the City of Philadelphia levied The Sugar-Sweetened Beverage Tax (SBT) , covering the distribution of sweetened beverages intended for resale in Philadelphia. This includes any non-alcoholic beverage that lists sugar or any other sweetener as an ingredient. The current tax amounts to $0.015 per ounce of sweetened beverage, and requires Philadelphia consumers to pay, on average, an additional 32 percent for sweetened beverages; and WHEREAS, Since the implementation of the SBT in 2017, PepsiCo reported an 80 to 100 employee layoff and 40 percent decrease in sales, Coca-Cola reported a 40-employee layoff and 32 percent decrease in sales, and the American Beverage Association reported a 1,192-employee layoff with a 29 percent decrease in sales; and WHEREAS, Additionally, Philadelphia-area small businesses, including supermarkets, restaurants, and other retailers, have faced challenges in balancing profits and sales. A 2021 study found that within two years of the tax implementation, audits of independent food retail stores passed 137 percent of the tax onto consumers. Philadelphia supermarket owners have reported a 25 percent decline in business following the SBT’s passing, which they have linked to the closing of stores, most recently with a West Philadelphia ShopRite; and WHEREAS, Teamst…