Philadelphia

Only Part of Philly International Airport Will Be Under Soda Tax

Terminals A East and A West are located in Tinicum Township, Delaware County where the tax will not be enforced.

You won’t have to pay a tax on soda or sugary drinks at Philadelphia International Airport next year—as long as you’re on the Delaware County side.

In June Mayor Kenney signed into law a 1.5-cent-per-ounce tax on sugary and diet beverages in Philadelphia which amounts to 18 cents on a 12-ounce can of soda or $1.44 on a six-pack of 16-ounce bottles. The tax does not apply to Delaware County however.

Philadelphia International Airport Terminals B, C, D, E and F are all located in Philly while Terminals A East and A West, the end of Concourse B, aircraft gates and two runways are located in Tinicum Township, Delaware County where the tax will not be enforced.

It still presents a complicated situation for vendors who operate in terminals located in both counties however. Pete Ciarrocchi, the CEO of Chickie’s and Pete’s, which has locations in both the Philadelphia side and the Tinicum Township side of the airport told Philly.com he would let the accountants handle the issue.

Philadelphia Mayor Jim Kenney said the money made from the soda tax, which is estimated to generate around $90 million annually, will go towards prekindergarten, community schools and recreation centers.

"First and foremost, this tax is about empowering our city to move full speed ahead toward a better Philadelphia," said Kenney. "The revenue from the Philly Bev Tax will help us tackle these debilitating issues head-on. By implementing this tax and focusing funds on schooling, recreation centers, parks, and libraries, we open a world of possibilities up to our children, and we give them the head start as well as the foundations for growth that can take them down the path to bright futures."

The American Beverage Association and others filed a lawsuit in September to try to block the soda tax. The beverage industry had spent more than $10 million fighting the plan before Philadelphia City Council approved it in June.

The beverage industry groups, restaurants and consumers who sued complain that the tax duplicates the state sales tax already imposed on soda. Hotel stays in Philadelphia are also taxed by state and city authorities.

The lawsuit said the tax on both sugary and diet beverages is unfairly based on volume, not price, resulting in a higher tax rate on soda than on more expensive energy or coffee drinks.

Kenney said the tax was levied on beverage distributors, not directly to consumers.

"While it is repugnant that the multi-billion-dollar soda industry would try to take away these educational and community programs from the hundreds of thousands of Philadelphians who need them, we were not surprised by their lawsuit given the ten million dollars they have already spent opposing the tax," he said. "I have no doubt we'll be successful in defeating the lawsuit."

Copyright The Associated Press
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