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Santa Fe Soda Tax Proposal Fails

1 min readBy: Scott Drenkard

Santa Fe citizens yesterday rejected the proposed soda taxA soda tax is an excise tax on sugary drinks. Most soda taxes apply a flat rate per ounce of a sugar-sweetened beverage. of $0.02 per ounce, a rate that shakes out to six times the rate imposed on beer in the state of New Mexico. The measure was defeated 58-42, with turnout at 37.6 percent, a record high for Santa Fe, according to the Albuquerque Journal.

The voting on the taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. split along demographic lines. From the Journal story:

The split between Santa Fe’s neighborhoods showed up in the voting. The south side’s lower-income, more Hispanic District 3 voted 1,719 to 649 against the tax. The vote in mid-city District 4 was the most significant – 3,694 against to 1,628 in favor.

The high-end, northeast District 1 was the only district to go for the tax, but barely – 3,203 for to 3,187 against. Neighboring District 2 narrowly rejected the tax 2,933 against to 2,902 for.

Our previous coverage is here. Our research generally finds that soda taxes are regressive, do not necessarily improve health outcomes, and encourage tax avoidance.