In 2014, Berkeley became the first U.S. city to tax sugary drinks. On Nov. 3, voters will decide whether to double that tax. Measure AA is a citizen initiative. Its backers gathered 5,138 signatures, and the Alameda County registrar certified the petition on May 29.
What a yes vote does
Berkeley's current tax is 1 cent per fluid ounce, paid by distributors. It is a general tax, so the money goes into the general fund. Measure AA would suspend that tax and replace it with a 2-cent-per-ounce special tax whose revenue goes into a dedicated fund. The City Attorney estimates it would raise about $2.2 million a year, roughly $1 million more than the current tax brings in. Collection would begin April 1, 2027. Starting in 2028 the rate would rise with inflation, by no more than 5% a year, and it could never drop below 2 cents.
The money is split by formula. At least 42.5% would go to Berkeley Unified School District, which KQED's voter guide says would fund school cooking and gardening programs. At least 42.5% would go to community groups or city departments for health, dental, nutrition and drinking-water work. Up to 15% would cover administration and oversight. None of it could pay for lobbying or political campaigns. The city's existing panel of experts on sugar-sweetened beverages would recommend grants, and the City Council would approve them.
The current exemptions would stay: alcohol, milk-based drinks, infant formula, medical and weight-loss beverages, and small retailers with less than $100,000 in annual gross receipts. Because the measure was placed on the ballot by petition, the city says it needs only a simple majority to pass.
The case for and against
Supporters include the American Heart Association, the Ecology Center and Healthy Black Families. They argue in KQED's guide that the tax has raised $12 million over the past decade and paid for tens of thousands of health and dental screenings, and that sugary drink consumption fell while water consumption rose. The American Beverage Association's California arm opposes the measure. It argues that distributors pass the cost on to shoppers, that the tax hits low-income families hardest, and that it pushes people to buy drinks outside the city.
The legal question
A 2018 state compromise with the soda industry imposed a 13-year ban on new local taxes on sodas and other groceries, but it left existing taxes like Berkeley's in place. Supporters acknowledge the industry could sue on the grounds that doubling the tax amounts to a new one, Berkeleyside reported. They point to a recent court ruling in a Santa Cruz case, which found the state ban does not override the taxing authority of charter cities. Santa Cruz and Berkeley are both charter cities. That ruling could still be appealed. In the city's April poll, 69% of respondents supported Measure AA.