PHILADELPHIA: Philadelphia's new tax on sweetened beverages is exceeding expectations.
Figures released Thursday by the city's Department of Revenue show the tax brought in $6.4 million in February. The city had projected the tax would generate $5.9 million for the month.
The 1.5-cent-per-ouce tax on sweetened and diet beverages funds pre-K and community schools. It also will help pay to renovate recreation centres, libraries and parks.
The tax generated $5.9 million in January, more than double its prediction of $2.3 million.
The tax is imposed at the distributor level. If fully passed onto the consumer, it amounts to $1.44 on a six-pack of 16-ounce bottles.
Pepsi is pulling 2-liter bottles and 12-packs of its products from Philadelphia stores to offer products and sizes that working families can better afford.