Chicago soda tax on free refills and by mistake, even on water

[Keith and stuff]

New Soda Tax Brings Confusion, Mistakes
August 2, 2017 10:29 PM By Dana Kozlov
http://chicago.cbslocal.com/2017/08/02/new-soda-tax-brings-confusion-mistakes/

The rollout of Cook County’s new soda tax is anything but sparkling.

Less than 24 hours after the tax went into effect, CBS 2’s Dana Kozlov found some stores slapping customers with the surcharge when they shouldn’t be.

The penny-an-ounce sugar tax is leaving some with a bitter aftertaste.

Day One, and many say two words come to mind: “confusion” and “frustration.”

Near North Side 7-Eleven owner Aruna Sathia says the tax’s implementation has gone smoothly here.

But that’s not the case everywhere. Only drinks sweetened artificially or with sugar are subject to the new tax. Sparkling, non-sweetened water is supposed to be exempt.

But Kozlov selected a La Croix 12-pack at a Streeterville Walgreens and it was rung up with a sweetened beverage tax charge of $1.40. When questioned, employees said they couldn’t remove it.

At a Division Street mom-and-pop shop, Ice Mountain sparkling water was also erroneously taxed 17 cents, according to the receipt.

Cook County officials say by statute, the government collects from the retailer, not the customer. So, buyer be aware.

If they buy at all.

Even free refills are subject to the new tax, with county officials saying it’s up to retailers if they want to charge it.

CBS 2 found one restaurant Wednesday that did.

 

[Keith and stuff]

Chicago already has a 10.25% sales tax. Add to that the possibly more than 68% soda tax, and you are looking at paying more for taxes than for drinks in many instances. Why not just create a 50% VAT at this point?!?

#TweetYourReceipt: Show us your soda tax
http://www.chicagotribune.com/news/...-soda-tax-perspec-0803-jm-20170802-story.html
Editorial Board

First, confusion reigns. Retailers and restaurants weren't prepared to apply the tax correctly, or didn't know how. The receipts we collected from Walgreens, for example, didn't reflect the new tax at all. Our purchases included a two-liter bottle of Coke, a 20-ounce bottle of Diet Coke and an 18-ounce bottle of Narino sweetened iced tea.

A district manager collared by a Tribune employee said the chain's computer system was in chaos. Customers at one store were being charged the tax on La Croix sparkling water, which isn't supposed to be taxed at all, he confirmed.

Second, this tax isn't about reducing obesity or preventing diabetes. But you knew that. The 13-ounce bottle of Dunkin' Donuts French vanilla iced coffee purchased by one colleague (13 cents tax) has 290 calories, which is 290 more than that whole gallon of iced tea ($1.28 tax). Another colleague's grande Starbucks Coconutmilk Mocha Macchiato weighs in at 210 calories. It wasn't taxed at all.

Third, it's highway robbery. One of us picked up a two-liter bottle of 7UP at Walmart for $1 — plus 68 cents beverage tax. Our highest-in-the-nation sales tax, 10.25 percent in Chicago, was dwarfed by that 68 percent beverage tax. Total cost for a $1 item: $1.78.

Let's say you buy one 20-ounce soda every afternoon at work. The new tax will cost you $52 a year. The Cook County Board didn't have the guts to add $52 to your property tax bill. That doesn't mean you won't pay it.

 

[tod evans]

Chicago has pensions to fund damn it!

Why do you hate retired heroes?

 

[angelatc]

Chicago already has a 10.25% sales tax. d

Food Stamp recipients are exempt: http://www.chicagotribune.com/busin...stamps-exemption-0610-biz-20170609-story.html

Under federal law, purchases made with benefits from the Supplemental Nutrition Assistance Program, or SNAP, are exempt from state and local taxes.

The county had hoped to apply the beverage tax universally by having retailers fold it into the selling price of the products, like overhead costs, instead of tacking it on at checkout. But a ruling from the state Department of Revenue posted online Thursday said that approach would constitute an "overcollection" because the higher selling price would then be subject to sales tax.

Since it's up to the retailer to pay it, I wonder if the retailers are expected to foot the bill for the food stamp recipients? If so, retailers are going to be raising the price of soda. And SNAP recipients are going to start selling soda alongside the narcotics they already traffic in.

 

[fedupinmo]

I would be curious how many go ahead and take it in the pooter and pay that little charge, not realizing the tax would disappear (on the water at least) if they showed some fortitude, stuck together, and refused to pay it.

 

[juleswin]

Chicago has pensions to fund damn it!

Why do you hate retired heroes?

Its in their constitution to payout 100% of the pensions. Only an anti constitutionalist, red commie, anti law and order liberal would come out against a constitution. Now that I think about it, I wonder if they can get around their constitutional obligations and just automatically tax anyone receiving a pension by x% in order to take care of the pension shortfall? sucks for a few people but it would save the state

 

[angelatc]

Its in their constitution to payout 100% of the pensions. Only an anti constitutionalist, red commie, anti law and order liberal would come out against a constitution. Now that I think about it, I wonder if they can get around their constitutional obligations and just automatically tax anyone receiving a pension by x% in order to take care of the pension shortfall? sucks for a few people but it would save the state

It's also in the constitution that all able bodied adults are militia members.

 

[juleswin]

It's also in the constitution that all able bodied adults are militia members.

So how does this information help their budget situation? loosen their gun control laws and pay their pension obligations or renege on their promise to pay full amount on pensions and keep their gun control laws?

 

[angelatc]

So how does this information help their budget situation? loosen their gun control laws and pay their pension obligations or renege on their promise to pay full amount on pensions and keep their gun control laws?

Repeal gun control laws and tax ammo.

 

[Keith and stuff]

87% oppose the new drink tax that is added to drinks after the already 13.25% sales tax.

A new poll has found that nearly 87 percent of Cook County residents disapprove of the new Cook County Sugary and Sweetened Beverages tax that took effect Aug. 2.
https://www.illinoispolicy.org/haterade-87-of-residents-disapprove-of-new-cook-county-soda-tax/


Soda is now more expensive than beer in Cook County. This encourages everyone to buy beer.