The beverage industry's lawsuit against Philadelphia's soft drink tax was dismissed today paving the way for the collection of the 1-1/2 cent per ounce tax on sweetened beverages, which would fund the city's expanded pre-K program. A 14-page decision issued by Judge Gary S. Glazer dismissed the suit "in its entirety."

City officials quickly put out statements applauding the ruling.

“We greatly appreciate the thorough and timely consideration that Judge Glazer gave to this matter," said City Solicitor Sozi Pedro Tulante. "The Judge upheld the key points of our argument: the Philadelphia Beverage Tax cannot be considered a sales tax, and neither does it violate the uniformity clause of the Pennsylvania Constitution.”

The lawsuit had also alleged that the measure would illegally tax SNAP (food stamp) benefits, which are exempt from sales tax and would cause the state to lose revenue of $2.7 to $7.8 million annually due to a decrease in purchase of soft drinks.

Mayor Jim Kenney called the ruling a "victory for Philadelphians, who have waited far too long for investment in their education system and in their neighborhoods." He urged the beverage industry to accept Judge Glazer's ruling and "do the right thing for the children of Philadelphia, many of whom struggle in the chilling grip of pervasive poverty."

However, the beverage industry's counsel, Shanin Specter of Kline & Spector, quickly ended all speculation on whether this ruling would be final, by offering up a three word statement, "We shall appeal."

The Pennsylvania State Supreme Court will be the next court to review the case.

Philadelphia's beverage tax, which will be levied on both sugary and diet drinks, was passed by the City Council and signed into law in June. Kenney proposed the tax in early 2016 as a way to raise about $92 million a year for universal pre-K and other Philadelphia programs and services.

The 10 plaintiffs listed in the lawsuit include the American Beverage Association, the Pennsylvania and Philadelphia Beverage Associations, the Pennsylvania Food Merchants Association, a local restaurant, local beverage distributors and several consumers.

Anthony Campisi of the Philadelphians Against the Grocery Tax Coalition, expressed his group's disappointment with Judge Glazer's decision. "More than 30,000 Philadelphians and more than 1,600 businesses and local organizations have joined together to say that this tax unfairly targets working families and small businesses," he said. "Families will face an additional tax burden even as the city has demonstrated that it has the resources to move forward with pre-K without this tax."

http://www.forbes.com/sites/nancyhuehnergarth/2016/12/19/lawsuit-against-philadelphia-soda-tax-is-dismissed-an-appeal-is-planned/#5609453d5c34