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December 27, 2007
Chicago Retailers Plan to Sue over Bottled Water Tax
The first of the year, Chicago will invoke a 5 cent tax on every bottled water sold in the city, and the Illinois Retail Merchants Association, for one, intends to sue over the legality of the tax.
The tax, which was approved by the Chicago City Council this fall, is the first of its kind in the nation and its intention is to encourage water drinkers to forgo plastic water bottles in favor of tap water, as well as bring in an estimated $10.5 million in tax revenues annually.
"People are already leaving the city when it comes to gas, alcohol and cigarettes," said Dave Vite, CEO of the Illinois Retail Merchants Association, a co-plaintiff in the expected lawsuit. "This will affect anybody that sells bottled water, because when customers do migrate, they take other business with them."
Illinois Beverage Association Executive Director Tim Bramlet said, "State law prohibits the City of Chicago from imposing a tax on a single product like they have done with this bottled water tax."
Others interested in the suit to be filed in January include the American Beverage Association, the International Bottled Water Association, and the Illinois Food Retailers Association, as reported by the Chicago Tribune.
Posted by Stephen Betheil at December 27, 2007 01:55 PM
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