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State high court to hear appeal of Philly soda tax

HARRISBURG — Pennsylvania’s highest court said Tuesday that it will hear an appeal in a lawsuit challenging Philadelphia’s year-old tax on soda and other sweetened drinks that inspired other cities around the country to enact their own.

The Pennsylvania Supreme Court issued a brief order, saying it would hear the appeal by the industry, restaurants and retailers on whether the tax violates a 1932 law prohibiting Philadelphia from taxing a transaction or subject already taxed by the state.

The city’s lawyers said they expected the high court’s review and maintained that they are confident the city has the authority to enforce the tax, which is imposed on distributors. A lawyer for the business owners and organizations suing said he was “heartened” by the court’s decision to review the tax.

City officials say the tax revenue — designed to help pay for pre-kindergarten, community centers, libraries and parks and recreation centers — can eventually benefit tens of thousands of children and families. Proponents also say the tax encourages healthier dietary habits and attacks a key culprit in obesity, while opponents say it is causing layoffs and is hurting small businesses.

In Pennsylvania, a lower court last June upheld Philadelphia’s 1.5-cent-per-ounce tax on sweetened beverages. The beverage tax raised almost $79 million in 2017, its first 12 months, according to city officials, slightly below initial projections of $92 million a year.

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