Will Marylanders Have to Pay More for Their Favorite Sugary Drinks?
Maryland Considers New Tax on Sugary Drinks: What It Means for Consumers
Source: Aaron M. Sprecher / Getty
Maryland lawmakers are considering a new tax on sugary drinks that could make sodas and similar beverages more expensive. The House of Delegates Ways and Means Committee recently heard over two hours of testimony from both supporters and opponents of the proposal.
The For Our Kids Act (House Bill 1469) aims to tax distributors for selling sugary drinks, syrups, and powders to retailers starting in July 2026. The proposed tax would be 2 cents per ounce for beverages, while syrups and powders would be taxed based on the amount of drink they can produce.
Beginning in 2027, the tax rate would increase annually based on the consumer price index. However, if the index shows no growth or declines, the tax rate would remain unchanged.
Exemptions and Revenue Allocation
Certain sales would be exempt from the tax, including:
- Drinks sold to the government
- Products resold outside the U.S.
- Beverages sold to other distributors rather than retailers
Revenue from the tax would help fund educational programs for students across Maryland.
Which Drinks Would Be Taxed?
Under the bill, sugary drinks are defined as non-alcoholic beverages—carbonated or non-carbonated—that contain added sugars or non-nutritive sweeteners. This includes sodas, some fruit juices, and sports drinks.
However, natural fruit or vegetable juices, milk, infant formula, and beverages for medical use would be exempt from the tax.
The Debate: Public Health vs. Consumer Impact
Bill sponsor Del. Emily Shetty emphasized that the measure is about both public health and revenue generation.
“Excessive consumption of sweetened beverages is a significant public health concern,” Shetty said. “By imposing a tax on distributors, we can reduce the intake of these harmful drinks, promote healthier choices, and generate revenue.”
However, some Maryland residents remain skeptical. At an Annapolis gas station, locals questioned whether the funds would truly benefit students and whether the tax is necessary—especially in challenging economic times.
“I really don’t think they need to do that. It’s just another way of taxing people,” said Annapolis resident Ken Walter. “People are going to buy sugary drinks no matter what.”
How Does Maryland Compare to Other States?
Similar beverage taxes already exist in places like Philadelphia and Seattle.
- Philadelphia imposes a 1.5-cent per ounce tax on sugary drinks and their syrup or powder equivalents.
- Supporters argue these taxes provide a steady revenue stream and that Maryland could set an example for other states by becoming the first to implement a statewide measure.
The fate of the For Our Kids Act remains uncertain as lawmakers continue to weigh its potential impact on public health, consumer costs, and state revenue.
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Maryland Considers New Tax on Sugary Drinks: What It Means for Consumers was originally published on r1wolbbaltimore.staging.go.ione.nyc