Philly Soda Tax Draws in $6.4 Million for February, Exceeding City’s Estimate
The Philly soda tax brought in $6.4 million dollars in February, its second month of collections, the city announced Thursday morning. The figure exceeds Philly’s revenue projection of $5.9 million for February.
This means that so far, the Philly beverage tax has brought in a total of $12.3 million from its first two months. The tax garnered $5.9 million in collections in January, revised up from an initial total of $5.7 million. The city says totals will continue to fluctuate throughout the year due to consumption changes caused by events like holidays and weather.
The Department of Revenue says the city is on track to reach its fiscal year goal of $46 million, which will include collections from January through June. The full year projection for the soda tax is $91 million, which will be used to fund pre-K expansion and community schools and the revitalization of public spaces. To remain on target with both goals, the city will have to collect about $7.7 million until April and then $7 million each month for the rest of the year.
While distributors have recently reported additional layoffs to staff and one soda company has even said it’ll cut the cord with some grocery stores altogether, the revenue department has boosted its outreach program to help local businesses comply with the tax, including launching e-newsletters and a multi-lingual website for dealers and street team visits to more than 5,000 retailers.
“Ultimately, the businesses of Philadelphia need customers and employees,” said Mayor Kenney in a statement. “And the investments from the PBT will make sure Philadelphia has a talented workforce by starting with quality education for the young, and by ensuring that Philadelphia is a place where people want to live, work, and shop.”
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