American Beverage Association opposes the City of Santa Cruz’s new ‘sugary drink tax’

SANTA CRUZ COUNTY, Calif. (KION-TV) -- The City of Santa Cruz's new sugary drink tax is already seeing challengers.

The American beverage association and partners filing a lawsuit this week saying that the tax conflicts with state law.

The sugary drink tax was passed back in November under Measure Z, which was designated to apply a two-cent-per-fluid ounce tax on those drinks.

Plaintiffs in this lawsuit argue that the tax violates the 2018 "Keep Groceries Affordable" act, calling for the tax to be unenforceable.

They're saying that all proceeds from that tax, since it went into effect earlier this month, should be refunded.

KION reached out to the City of Santa Cruz for comment on this case. The City Manager Matt Huffaker said: "No one is surprised that big soda, after having spent millions to stop the measure unsuccessfully, may be seeking to overturn the tax that the majority of Santa Cruz voters supported. We are confident that charter cities like Santa Cruz have the right to impose and enforce this type of tax.”