Texas Bill Proposes Soft Drink Tax, Local Health Expert Weighs In

The sound of soda cans opening across Texas could soon mean extra cash for the state’s thirsty budget.

Senate Bill 1004, designed by Brownsville Senator Eddie Lucio (D), proposes a tax on soft drinks. The legislation includes any beverage containing sugar or artificial sweeteners, even diet sodas.

Drinks excluded from the tax under the bill would include milk or milk products, soy, rice or milk substitutes or juices that are either 50% fruit or vegetable.

Restaurants, cafeterias and hotels would also be exempt.

S.B. 1004 proposes a tax of one cent for every fluid ounce of taxable beverage. That adds up to 12 cents per can of soda or 72 cents for every six-pack.

Senator Lucio estimates the tax could generate as much as $2 billion dollars annually for the state’s general fund as well as help curb Texas obesity and diabetes rates.

But Michael Kelly, Senior Program Officer for the Paso Del Norte Health Foundation told ABC-7 he’s unsure the tax is enough to change sugary habits.

“What we know from the tobacco tax is that about 50% to 70% will reduce consumption in price-sensitive populations,” Kelly said. “A penny an ounce, is that enough to affect somebody? I don’t know.”

While packing up her groceries outside a West El Paso grocery store, shopper Norma Morales told ABC-7 she agrees with Kelly.

“I’d still pay the price increases,” she said. “I’d still buy the diet sodas.”

S.B. 1004 is currently in the Senate Finance Committee.

To read the bill, click here