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Philly’s Soda Tax Continues To Lag Behind Expectations

PHILADELPHIA (CBS) – Figures from August show revenue from Philadelphia’s beverage tax continues to lag behind expectations, but the mayor says he’s satisfied with the results so far.

The one-and-a-half-cent an ounce tax brought in $6.6 million in August. As it has been for several months, that’s still about a million short of what the city hoped for but Mayor Jim Kenney says it’s in keeping with what economists consider normal for a new tax.

“As the tax gets older and more predictable in the collection, we will get better,” said Kenney.

The mayor says a bigger problem is the beverage industry lawsuit challenging the tax, which is preventing the city from spending the money to expand the programs the tax is designated for: pre-K, community schools and a city facilities rebuild.

The beverage industry jumped right on the numbers, re-asserting its claim that the tax is not a sustainable source of funding for those projects.

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