State snack and soda taxes from 2003-2007: A public health policy approach to discouraging consumption of snacks and sodas?

Obesity and related health concerns are a large public health epidemic. In 2005, 23.9% of US adults were obese and obesity prevalence increased in all states from 1995-2005.¹ Consumption of sugar based soft drinks and snack items contributes to weight gain and obesity in both juvenile and adult populations.² One legal or policy strategy that governments may use to reduce overweight and obesity is to impose higher taxes on unhealthy food and beverages as a way to discourage consumption.^3,4 A similar strategy has been quite successful at reducing use of other unhealthy products such as cigarettes.

While food industry lobbyists have been successful at the repeal of state snack and soda specific excise taxes in the late 1990's and early 2000's, preliminary tax policy data collected using primary legal research techniques and analyzed for the Robert Wood Johnson Foundation-supported ImpacTeen project indicates that states are continuing to use the sales tax provisions to discourage consumption. For example, in 2006, twenty states imposed a larger tax on soft drinks than other food items sold in grocery stores, while twenty-five states imposed a larger tax on soft drinks than other items sold through vending machines.

This presentation examines the variance in state tax treatment of snack items and soft drink sold by grocery stores and through vending machines from 2003 to 2007, explains taxation of snacks and sodas as a broader public health policy intervention, and identifies opportunities for states to use taxes to discourage consumption of snack and sodas.