Santa Cruz has successfully implemented a two-cents-per-ounce tax on sugary beverages, ending a seven-year legislative battle that began when the beverage industry pressured California's state legislature to block local excise taxes in 2018. The city's landmark measure, Measure Z, passed in November 2024 after a complex legal journey that challenged the original preemption law.
The tax applies to soda, sports drinks, and fruit drinks with added sugar, with projected annual revenue of $1.3 million. A local advisory board will determine how to invest these funds, potentially supporting community health initiatives. This development represents more than a municipal policy change; it signals a potential shift in public health strategy nationwide.
Scientific research has consistently demonstrated the health risks associated with sugary drink consumption, including increased risks of heart disease, type 2 diabetes, and tooth decay. Particularly vulnerable are children, who may face higher chronic disease risks from regular sugary beverage intake. Previous studies have shown that such taxes can effectively reduce beverage purchases and generate significant revenue for community improvements.
Nancy Brown, CEO of the American Heart Association, emphasized the significance of Santa Cruz's achievement, calling it a victory against industry misinformation. The organization has been a key supporter of the initiative, viewing it as part of a broader strategy to combat sugary drink overconsumption and promote public health.
The successful implementation of Measure Z follows a complex legal challenge. After the 2018 preemption bill blocked local tax initiatives, advocates from Fresno and a Santa Cruz elected official filed a lawsuit. In 2021, the Sacramento County Superior Court found the law's penalty provisions unconstitutional, a ruling later affirmed by an appeals court in 2023.
Santa Cruz's victory could potentially inspire other municipalities to pursue similar public health measures. By demonstrating that communities can successfully challenge industry resistance and implement evidence-based health policies, the city may serve as a model for nationwide sugar-related health interventions.
