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Is Water Considered Soft Drink?

January 6, 2008

Chicago sued over bottled water tax

The Chicago City Council on Jan. 1 imposed a first-in-the-nation 5-cent tax on bottled water sold in the city in the hopes of decreasing plastic waste and generating $10.5 million in revenue, the Chicago Sun-Times reported Saturday.

The lawsuit says the tax is illegal because it evades a state law prohibiting taxation on food consumed away from the establishment of purchase.

The suit states bottled water is not classified as a soft drink and should be therefore considered in the same group as milk, sports beverages and teas, a group not subject to tax.

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