ANNAPOLIS, Md. — Buying your favorite sports drink or cracking open a cold soda could cost you more if Maryland House Bill 1469 passes.
Delegate Emily Shetty of Montgomery County introduced the "For Our Kids Act" which proposes charging an additional two cents per ounce tax on sugary liquids, powders and syrups at the distributor level.
"The purpose of the bill is to create an opportunity for reflection by consumers in the grocery aisle when deciding whether to purchase something as a treat or as a regular item that's consumed every day," Delegate Shetty explained.
According to the bill, it's up to distributors if and how much of the costs gets extended to the consumer.
If the entire upcharge does get passed along, that could mean paying 32 cents more on a 16 oz bottle of soda.
For the average Marylander, that might mean about $100 more out of pocket every year.
Baby formula, natural juices, and Pedialyte would be exempt.
Shetty says pediatricians and other groups have received the bill with enthusiasm.
But overall, the reaction has been mixed.
"It's just not the right time to do this," economics professor at Towson University Tom Rhoads said. "People [are] already almost shell shocked with seeing the price of everything at the grocery store going up so much."
Proposed bill could add an additional two cents per ounce tax on sugary liquids
Similar legislation was passed in cities like Philadelphia in 2017. If signed into law in Maryland, it would be the first state to follow suit.
Revenue from the tax is anticipated to be $500 million dollars which would go towards free lunch and childcare scholarship programs. The leftover would go to the general fund.
"This is a very minimal tax that could then be turned around and invested in programs that we all care about," Shetty said.
Rhoads says the estimated revenue is wishful thinking.
“That's assuming that everybody buys the same amount of sugary drinks as they did before the tax. That's not going to happen," he said. "If they're anticipating that this is going to help them offset some of the budget potential problems in the future, I'm not so sure it's going to be helping as much as what they think."
In Philadelphia after the soda tax started, sales dropped by 50% according to this study published by the National Library of Medicine.
Rhoades says he ultimately doesn't expect it to pass.
A hearing for the bill is scheduled on Thursday, March 6.
