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Philly Becomes First Major U.S. City With Soda Tax

City will collect 1.5 cents per ounce.

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Carlos Garcia Rawlins/Reuters

In the face of large-scale opposition from the beverage industry, Philadelphia's city council on Thursday passed a tax on sugary drinks. Dubbed the "soda tax," the legislation will levy a 1.5 cent-per-ounce tax on sugary drinks and diet beverages. Opponents had warned that the tax would create a black market. Philadelphia Mayor Jim Kenney was able to sell the council on the proposal by pledging to use the extra funds for pre-K programs and recreation centers. Philadelphia becomes the first major U.S. city to approve such a tax; Berkeley, California, instituted a similar measure in 2014.

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