LANSING — The state legislature is considering a change in state law which would reclassify soda pop as a non-food item, thus making it eligible for a 6 percent state sales tax.
Democratic State Rep. Terry Brown of Pigeon argues the move will raise an estimated $66 million in revenues for the state. He wants that money to shore up the state education fund, which took a $142 million hit from the Republican-controlled Senate earlier this year.
This move, along with a proposal to increase the state’s beer tax, come as the legislature struggles with an estimated $2.7 billion budget hole.
State House Speaker Andy Dillon, a Redford Democrat, told The Grand Rapids Press:
It goes without saying that all options are on the table to resolve our state’s fiscal crisis.
But the powerful Michigan Food and Beverage Association says this is the wrong time to tax soda pop:
“Lawmakers should be looking at cutting the budget, not adding taxes,” said Bonnie Bochniak, director of government relations for the Michigan Food and Beverage Association. “Businesses don’t need another reason for people not to buy an item in this economy. Small businesses, your mom-and-pop stores, are already fighting.”
Michigan is not alone in this consideration. Massachusetts Gov. Deval Patrick, a Democrat, is considering legislation which would impose a 5 percent tax on food and beverages with more than 50 percent sugar content.