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The Cost of Measure Z

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A recent study by UC Davis shows that beverage taxes did not decrease beverage sales. However, the 2023 study of three Northern California cities where beverage taxes had been implemented, found that the tax hurt low-income residents the most. In fact, one of the authors of that study, Kristen Kiesel, noted that lower-income households, “are bearing the burden of the portion of the tax passed forward to retail without gaining health benefits.”

Read the study for yourself!

Vote NO on Measure Z to stop the proposed beverage tax

  1. IT IS ILLEGAL
    A beverage tax in Santa Cruz would violate California state law. Defending it in court would be a waste of taxpayer dollars and strain city resources.
  2. IT HURTS LOWER-INCOME FAMILIES
    According to a UC Davis study, these taxes are disproportionately paid by lower-income residents who can least afford to pay them.1
  3. IT RAISES FOOD COSTS
    As food and housing costs continue to rise, now is not the time to institute what would be the largest beverage tax in the entire country – adding $5.76 to a case of soda.
  4. IT WON’T IMPROVE PUBLIC HEALTH
    One of the UC Davis study authors assessing the impact of California beverage taxes stated, “There is little evidence that lower-income households have reduced purchases of sugary beverages in response to these taxes, meaning they are bearing the burden of the portion of the tax passed forward to retail without gaining health benefits.”2

A new beverage tax would cost Santa Cruz too much

The new tax would mean a big burden on our household budgets. After the new beverage tax, some drinks will cost 30%+ more.

A new beverage tax would cost Santa Cruz too much

As Santa Cruz families and small businesses continue to experience the impact of inflation, the city council has decided to pursue a political agenda by placing a beverage tax on the November ballot. The measure would impose a two-cent per-ounce tax on everyday beverages, equaling the highest beverage tax in the country. In a community that is already struggling with the high cost of living and making ends meet, it is plain wrong that the city council would potentially add hundreds of dollars to residents’ grocery bills every month and threaten the local economy.

Further, this beverage tax is an illegal move by the council, as a state court last year left intact the central premise of a bipartisan 2018 law that prohibits grocery taxes in California. Santa Cruz’s measure would harm working families and small businesses while not accomplishing any of the goals that proponents suggest, leading to lawsuits and ignoring real public health solutions. With Santa Cruz facing multi-million dollar budget deficits forcing cuts in local programs, Mayor Keeley said that this tax would go “through the courts for multiple years costing us huge amounts of money...”3

Working families, labor unions, community leaders and local businesses will be coming together this fall to keep Santa Cruz affordable for everyone.

1 Hairu Lang, Kristin Kiesel, and Richard J. Sexton. Giannini Foundation of Agricultural Economics, University of California. ARE UPDATE. VOL. 26, No. 3. Jan/Feb 2023

2 UC Division of Agriculture and Natural Resources, https://ucanr.edu/blogs/blogcore/postdetail.cfm?postnum=56320

3 Mayor Fred Keeley, Santa Cruz City Council Meeting, 06/25/2024