A tax on sugary drinks takes effect Thursday in the beachside community of Santa Cruz, seven years after California banned its cities and counties from implementing local grocery taxes as part of a reluctant deal with the powerful beverage industry.
The 2-cent-per-ounce tax, approved by voters in November, is the first in the state since lawmakers approved the 2018 deal. The American Beverage Association spent heavily to campaign against the ballot measure in the small city of 60,000, and in court called the tax illegal and likely to strain city resources.
