Manatt Partner Speaks to Law360 on San Francisco's Proposed Soda Tax

"San Francisco 'Soda Tax' Proposal to Face Familiar Foes"
Law360

November 1, 2013 - Manatt's Thomas McMorrow, a partner in the firm's Government & Regulatory Division, spoke to Law360 about a proposed San Francisco ordinance to impose a 2-cents-per-ounce tax on sodas, sports drinks, energy drinks and other sugar-sweetened beverages.

Law360 reports that the ordinance comes after voters in the California cities of Richmond and El Monte rejected similar measures in the November 2012 election, each of which called for a 1-cent-per-ounce tax on sugary drinks. The proposal is likely to draw objections from groups who see the tax as a government overreach that interferes with people's personal decisions.

McMorrow told Law360 that the measure also will not sit well with small businesses, such as franchise restaurants, convenience stores and movie theaters, or the agricultural industry.

"I don't imagine our agriculture sector, one of the state's biggest economic drivers, is going to want to start taxing ingredients," he said. "We're recovering from a recession, the Federal Reserve is worried about inflation for the first time in over a decade, and San Francisco is going to debate taxing sugary drinks? I would prefer they debate lowering costs and helping to create a better jobs climate."

Read the article here.