SANTA CRUZ — With the ultimate certification of votes by the Santa Cruz County Clerk Tuesday afternoon, the poll initiative within the metropolis of Santa Cruz often called Measure Z, or the Sugar-Sweetened Beverage Tax, has formally handed.
In keeping with the Santa Cruz County Elections Division, 15,780 votes had been counted in favor of the poll initiative, or about 52%, and 14,364 votes, or roughly 48%, had been counted in opposition to the passage of Measure Z.
The Sure on Measure Z for a Secure and Wholesome Santa Cruz marketing campaign was led by Santa Cruz Metropolis Councilmembers Martine Watkins, Sonja Brunner and Shebreh Kalantari-Johnson, who expressed their gratitude towards group members, volunteers and organizations that supported the hassle.
“We are incredibly proud of the hard-fought campaign for Measure Z and deeply grateful to the voters of Santa Cruz for their support,” stated Watkins. “This victory represents a collective stand for public health, community well-being and the power of local democracy.”
Kalantari-Johnson added, “Despite being outspent $1.9 million to our $85,000 by corporate special interests, the people of Santa Cruz stood strong and made their voices heard. This outcome is a testament to the strength of community organizing, the dedication of community advocates and the commitment of our residents to create a healthier future for all.”
Steve Maviglio, spokesperson for the opposition group referred to as Marketing campaign for an Inexpensive Santa Cruz, identified that the race was a detailed one, with the measure passing by about 1,400 votes, and that the tax might face authorized challenges shifting ahead.
“State law governs this matter, and the law says local taxes on groceries are illegal in California,” stated Maviglio. “The fact that the vote is this close shows that even in the most progressive communities in California, voters are standing up to a regressive tax that hurts working families, local businesses and their employees. This is no surprise given the strong support for the statewide ban on local grocery taxes passed in 2018 by the legislature, and we are grateful for the progressive leaders, labor unions, small business owners, students and residents who came together to keep Santa Cruz affordable and oppose this unfair tax.”
The historical past of the sugar-sweetened beverage tax within the metropolis goes again to 2018 when a 1.5-cent-per-ounce sugary drink tax poll initiative, championed by Watkins and others, was accredited by the Santa Cruz Metropolis Council to go to a vote by metropolis residents that November.
The initiative was dropped at an finish two days later when then-Gov. Jerry Brown signed the Hold Groceries Inexpensive Act into regulation in June 2018 that forestalls taxes on grocery objects till 2031, and included a penalty provision that may take away all of a metropolis’s gross sales and use tax income if any constitution metropolis tried to implement a grocery-related tax resembling a soda tax.
After the act was handed, then-Santa Cruz Metropolis Supervisor Martin Bernal urged the measure be taken off of the 2018 poll in concern of the penalty, and it was eliminated by the Metropolis Council.
In 2020, a lawsuit was filed by Jarvis, Fay & Gibson, LLP on behalf of Watkins and Fresno-based nonprofit Cultiva La Salud. ChangeLab Options and the American Coronary heart Affiliation additionally supported the authorized motion. In fall 2021, the Sacramento County Superior Court docket dominated that the Hold Groceries Inexpensive Act’s penalty provision was unconstitutional and unenforceable. The state then appealed the court docket’s resolution.
In March 2023, the California Third District Court docket of Appeals upheld that the penalty provision within the regulation was unconstitutional and unenforceable, which permits constitution cities resembling Santa Cruz to place sugary drink tax initiatives to a vote with out penalty. Though the penalty provision for violating the act shouldn’t be enforceable, the regulation stays on the books.
Now that the initiative has handed, a normal excise tax of two cents per fluid ounce can be paid by distributors of sugar-sweetened drinks within the metropolis of Santa Cruz, with a small enterprise exemption for these distributors with lower than $500,000 in gross annual revenues. Some drinks are exempt from the tax resembling these containing lower than 40 energy per 12 fluid ounces of beverage, milk merchandise, drinks with pure sweeteners resembling honey, child components, alcoholic drinks and drinks supposed for medical use or as a meal alternative.
The tax is estimated to generate about $1.3 million yearly for the town’s normal fund. The tax income can be allotted by a seven-member group oversight panel, but to be established, consisting of members from sectors resembling well being and training.
“Together, we can build a future where the health of our children and neighbors comes before corporate profits,” stated Watkins. “Thank you to everyone who stood with us in this journey. This victory belongs to Santa Cruz, and it reflects the very best of what we can achieve when we work together.”
To see the official election leads to Santa Cruz County, go to votescount.santacruzcounty.gov.
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