Bill > SB646

This bill establishes a new tax on sugar-sweetened beverages, syrup, and powder, defining these terms broadly to include drinks with added caloric sweeteners, excluding those sweetened only with non-caloric sweeteners, 100% natural fruit or vegetable juices without added sugar, milk, coffee, tea, infant formula, and plain water. The tax is imposed at a rate of 1 cent per teaspoon of sugar in bottled sugar-sweetened beverages or the equivalent in concentrate sold to retailers, with distributors responsible for paying the tax, though retailers are liable if the tax hasn't been paid. The bill outlines requirements for tax returns, payments, record-keeping, and investigations by the department of taxation, and specifies that this tax is in addition to other existing taxes. Importantly, a portion of the revenue generated from this tax will be deposited into the community health centers special fund and the trauma system special fund, with any excess revenue going to the general fund. The act also includes exemptions for sales to the U.S. government, tribal governments, and for products intended for resale or consumption outside the state, and it will take effect for taxable years beginning after December 31, 2012.