Opposition Grows to Illegal Santa Cruz Measure Z That Will Hike Grocery Prices
Statewide Business Groups Representing Diverse Communities Across California Join Coalition
SANTA CRUZ, Calif. – Statewide organizations representing hundreds of local small businesses joined a growing coalition today united in opposition to Measure Z, a two-cent per-ounce beverage tax in the city of Santa Cruz. The Campaign for an Affordable Santa Cruz is uniting with local businesses, social justice groups and organized labor to urge voters to reject the unfair and ineffective tax.
Our campaign’s growing list of endorsements underscores widespread opposition to the tax’s negative economic impact on working families and small businesses. Joining the effort today are:
- California Chamber of Commerce
- CalAsian Chamber of Commerce
- California Hispanic Chambers of Commerce
- California Grocers Association
- California Restaurant Association
- California Retailers Association
- California Alliance of Family-Owned Businesses
The coalition will be emphasizing the detrimental impact of the proposed beverage tax on Santa Cruz’s small businesses, many of which are still grappling with the effects of the pandemic and inflation. A tax this severe would impose additional financial burdens on local restaurants and mom-and-pop shops, leading to decreased sales and risk employees’ jobs.
Said the California Restaurant Association: “Restaurants of all sizes across California continue to face a never-ending escalation of cost increases from both state and local governments. Measure Z would only add to that in Santa Cruz by forcing menu prices up, just as neighborhood restaurants and local voters have weathered the worst inflation storm in 40-years. Asking restaurants and guests to swallow new taxes right now is missing the plot. Beverage taxes have shown not to work as intended, and this ill-advised attempt will only create economic uncertainty for the city budget, local voters, and restaurant patrons. We urge all Santa Cruz residents to vote no on Measure Z.”
Grocery stores have been hit hard in cities that have imposed a beverage tax. Residents who live near the border shop in stores outside the city to avoid the tax, and when they do they take care of their entire grocery list there. This causes prices to increase across the board on all items as local businesses grapple with their increased costs.
Said the California Grocers Association: "Measure Z harms customers and the city by raising prices and subjecting Santa Cruz to significant legal jeopardy. Not only is this measure illegal, but it's regressive — increasing prices for shoppers at a time when many are already struggling."
The two-cent per-ounce tax would apply to a wide range of drinks such as juice drinks, energy drinks, kombucha, coconut water, and sports drinks, as well as soda. If it were to pass, Santa Cruz’s tax would match the largest beverage tax in the country -- and there is no guarantee how the tax revenue would be spent.
For more information on the coalition and its efforts, please visit: www.keepscaffordable.com.