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For
Immediate Release
November
5, 2007
Contact:
Tim Bramlet at 217-523-2990 or
Leah Martin at 312-217-9145
Bottled Water Industry Public Statement
In Response to City of Chicago's 5-Cent Tax
on Bottled Water
Illinois Retail Merchants Association
Illinois Beverage Association
International Bottled Water Association
American Beverage Association
While the bottled water industry understands the City's financial
situation, we are disappointed and concerned by the Finance
Committee's approval of this 5-cent tax on bottled water.
The unprecedented proposed tax on bottled water is an onerous
and discriminatory tax that will be paid for by consumers.
The $10.5 million in revenue anticipated by the City of Chicago
through this tax is highly inflated.
- Economists anticipate that demand for bottled water after
the tax is imposed could decline by as much as 50 percent,
along with corresponding tax revenue.
- Sales losses as a result of this tax would have the greatest
impact on Chicago retailers because much of the loss would
simply be shifted to surrounding communities, where consumers
will shop to avoid the tax.
The tax also poses serious legal issues which were presented
to the Finance Committee.
Illinois state statute that preempts certain home rule powers
casts serious doubts on the ability of the City of Chicago
to impose this tax, among other legal arguments.
The industry remains a vital economic contributor and
employer in Chicago, and the manufacture and distribution
of non-alcoholic beverages, including bottled water, play
an integral role in Chicago's economy.
The bottled water industry continues to invest time and
money to improve recycling programs. These are efforts
that are both good for the environment and good for business.
This tax on bottled water is neither.
For additional information, please contact Tim Bramlet at
217-523-2990 or Leah Martin at 312-217-9145.
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