California appellate court rules ban on local sugary drink taxes unconstitutional
The Praxis Project celebrates the legal win of Cultiva La Salud, ChangeLab Solutions, and the American Heart Association to repeal the industry-backed, 12-year preemption of local sugary drink taxes in California. AB 1838 was shown to have unconstitutional penalty provisions for charter cities. Without these penalties, these cities can once again decide for themselves the best way to address preventable chronic diseases directly tied to sugary drinks, including diabetes, heart disease, stroke, and certain cancers—all of which deeply affect our most marginalized communities.
AB 1838 was passed into law in 2018 and called for a 12-year ban on local soda taxes in California. This bill—called a "shakedown" by The Sacramento Bee and referred to as “extortion” of California Lawmakers—mandated that charter cities enacting taxes on sugary drinks be penalized with the loss of vital state sales tax revenue.
The beverage industry that laid the groundwork for AB 1838 was willing to eliminate a key revenue source for communities to protect their profits and also to deny much-needed funds to support community-led efforts in areas experiencing the worst health outcomes related to sugary drinks.
On March 29, the California Third District Court of Appeals ruled that the sanctions embedded in AB 1838 were unconstitutional and that local governments and residents have the right to decide for themselves if sugary drink taxes are right for their communities. The decision was made in response to a lawsuit filed on behalf of Cultiva La Salud and Martine Watkins of Santa Cruz and supported by ChangeLab Solutions and the American Heart Association.
“It is shameful that the beverage industry wielded its immense power to force AB 1838 through the California legislature,” said Xavier Morales, Ph.D., MRP, executive director of The Praxis Project. “Industry shouldn't have the power to protect its profits on the backs of California’s most marginalized communities. We are grateful for the leadership of Cultiva La Salud, ChangeLab Solutions, and the American Heart Association for their efforts to protect health and local control.”
Thanks to Cultiva La Salud, ChangeLab Solutions, and the American Heart Association, the beverage industry cannot continue its extortion of marginalized communities to protect their own profits; and Californians continue to have the power to decide what public health policies are best for their cities.
Read more about the ruling here.
Learn more about other efforts led by community organizations to change norms towards healthy beverages and to address other locally defined priorities here.