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Davis considers soda tax for 2016 ballot despite business opposition

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Davis city council Tuesday voted to further discuss the possibility of a sugary beverage tax, as well as other potential taxes to raise revenue for city improvements, on the June 2016 ballot. Desperate to make headway on unmet infrastructure needs, the city is considering three major taxes for placement on the ballot, the sugar sweetened beverage tax being the most controversial. Other possibilities include an a transient occupancy tax and a parcel tax. A possible utility tax was removed from the potential list Tuesday. Council will not officially determine which revenue-generating measures to put on the June ballot until mid-February. When the time for discussing the beverage tax finally came, nearly a dozen representatives from the local business community fervently opposed the potential measure - which would add s one cent tax to every one ounce of sugar sweetened beverage purchased in stores and restaurants within the city. On Tuesday, council voted to ask city staff to do more outreach in the community and conduct additional research on the possible implications of the beverage tax. "We need to look into it," said council member Rochelle Swanson. "Just because Berkeley did it doesn't mean we need to do it." Swanson referred to the successful Berkeley sugary beverage tax passed in November 2014. The proposed Davis tax is similar, and was put forward as an effort to reduce obesity as well as a way to raise city funds. But business owners see the tax as a direct affront, and fear its success will make it difficult for mom and pop restaurants and stores to stay afloat. "We're punishing customers for the decisions they make," said Andrew Adams, owner of Froggy's Grill in Davis who spoke against the beverage tax. "This is disposable income that folks should have the right to spend as they choose. (The tax) is a cash grab and an easy target." Staff wagers that The tax would bring in an estimated $800,000 during its first year of implementation. The utilities tax is expected to raise about one million dollars, while the transient tax would raise $130,000 and the parcel tax would raise $28,000. It's not the first time the City of Davis has taken a swing at sugar-sweetened beverages. Citing concerns about child obesity, the council passed a measure earlier this year to make milk and water the default beverage for kids' meals served with drinks at local restaurants. "I believe the health of our community and children is paramount," said Jackie Richardson, a Davis mother who was one of few to speak in favor of the tax. "This measure is part of that. Make the health of our children more important." If it succeeds, the measure will be the second of its kind in California. San Francisco attempted to pass a two-cents-per-ounce tax on sugar sweetened beverages last spring, but the measure failed.

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