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Mayor Kenney will introduce a tax on sugary beverages as part of his budget this week, according to sources familiar with the matter.
The soda tax, as it is usually called, was a tried-and-failed effort by previous mayor Michael Nutter. But Kenney, who came into office in January with several large and costly ideas including Universal Pre-K, has found that there aren't many streams of revenue available that wouldn't include raising taxes or creating a new tax.
Sources say a soda tax is Kenney's only option to get funding for his ambitious plans.
Speculation that the Kenney administration would take on the soda industry began when the mayor hired Dr. Thomas A. Farley to be the city's health commissioner in early February. Farley, who during his tenure as New York City health commissioner, attempted to ban soda drinks larger than 16-ounces. The city implemented the ban but a New York State appellate court overturned the decision, killing the ban.
Kenney is expected this week to announce details of how much the tax will be, what it applies to and how much money it is expected to generate.
Sugary drink taxes typically mean sugar-sweetened beverages, including soda, sports drinks and sweetened ice teas. In Berkeley, Calif., the only U.S. city to impose a soda tax, fruit juice, alcohol and milk-based beverages are not included. Berkeley's levy is one cent per ounce.
Nutter had proposed a tax of two cents per ounce. He emphasized the effects on sugary drinks on obesity as well as the need to fill a budget gap. Kenney would likely champion both the health benefits and the revenue opportunity.
The proposal could make for an interesting fight on City Council, which twice blocked Nutter's attempts to tax sugary drinks. Kenney himself voted against Nutter's proposal. Darrell L. Clarke led that opposition and successfully pulled others to his side.
But Kenney has recruited newly-minted majority leader Councilman Bobby Henon, who during budget negotiations last year was on the verge of proposing the tax himself, to help his cause.
"I get the sense they're looking to to make the determination," said a Council source familiar with the conversations. "If Bobby feels there's even a slight chance he'll probably move forward with it."
Insiders say Kenney could have a far better shot than Nutter at getting the tax approved, in part because, just weeks into his term, his relationship with Council is still rosy.
But opposition from lobbyists, who during previous attempts to pass the tax swarmed City Hall, is likely to be fierce. Several of those same faces were seen in the building last week.
