Overview

• Santa Cruz officially enacted a 2-cent-per-ounce tax on sugary drinks, approved by voters in November 2024.
• The move challenges a 2018 California law banning local grocery taxes, which lost enforcement power after a 2023 court ruling.
• City officials project the tax will generate $1.3 million annually and aim to reduce consumption linked to health risks like diabetes and heart disease.
• The American Beverage Association has criticized the tax as illegal and burdensome, signaling potential legal action.
• Santa Cruz leaders, emphasizing their charter city authority, are prepared to defend the measure as part of a broader push for municipal self-governance.