Maryland lawmakers are contemplating a new tax on sugary drinks to address budget issues, with proposed legislation known as the “For Our Kids Act” aiming to impose a 2-cent-per-ounce excise tax on non-natural sugar beverages. If enacted, Maryland would be the first state to implement such a tax, expected to generate $500 million annually for child care subsidies and meal programs. The bill has faced opposition, with critics calling it a “sin tax” and expressing concerns about burdening residents already facing high taxes. The proposed law lacks a Senate counterpart and must pass both the House and Senate before reaching the governor’s desk. If approved, the tax would take effect in July 2026, potentially increasing annually based on the consumer price index. Similar laws in cities like Philadelphia and Seattle serve as inspiration for the legislation, with amendments expected as discussions continue, including considerations for scenarios involving partially filled drinks with ice.
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