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.
