The beverage and retail industries took a stand today by filing a lawsuit seeking to invalidate the city of Chicago's new five-cent-per-bottle tax on bottled water.
The first-of-its-kind tax, which amounts to 30 percent on a case of bottled water, took effect on New Year’s Day. It has come under much criticism as the $10.5 million the city claims it will raise is earmarked solely for general revenue and not for environmental purposes.
"We're going to stand up for our customers, both retailers and consumers who are being forced to pay a tax on a healthy product like bottled water," said Susan Neely, president of the American Beverage Association, which represents the non-alcoholic beverage industry including bottled water producers.
Rationality
"This tax just defies common sense any way you look at it," Neely said. "We're hopeful this lawsuit will help common sense reign again for the sake of our customers."
The four plaintiffs in the lawsuit are the American Beverage Association, Illinois Retail Merchants Association, Illinois Food Retailers Association and the International Bottled Water Association. The suit was filed in Circuit Court of Cook County.
David F. Vite, CEO of the Illinois Retail Merchants Association, said Chicago residents are already leaving the city to avoid its high taxes on products like gasoline. Vite warns that consumers will migrate to the suburbs for bottled water and other groceries as well, hurting not just Chicago retailers but the city's economy.
January 7, 2008