You would think a heat wave would compel the Baltimore City Council to drop a proposed tax on bottled beverages altogether. But not so. Baltimore Mayor Stephanie Rawlings-Blake and the City Council really want the city's residents to pay more to beat the heat. Late Monday, the City Council gave preliminary approval to a two-cent per bottle tax on beverages. Observers expect the City Council to give final approval to the tax today.
This is quite a turnaround. Last week, the Council rejected the Mayor's original proposal for four-cent, $11 million bottle tax. The Council heard strong opposition from Baltimore residents and small businesses, including neighborhood grocery stores, which rightly feared that the tax would lead to higher prices for customers and lost business. NTU and its members were part of the opposition that helped to defeat the original bottle tax proposal.
According to City Council watchers, what happened between last week and Monday was that the Mayor, heading into a reelection, determined that she couldn't afford a defeat on this tax and look weak politically. So the Mayor used a combination of horse-trading and pressure to push her tax through. While the Mayor won her battle with the City Council, the losers are the residents and retailers of Baltimore who will end up paying more for beer, soda, and other bottled beverages they use every day. While this bottle tax is lower than the original proposal, it is still an extra cost that will drive up prices for beverages and drive out business at the time when residents can least afford it. Hopefully, the members of the City Council will realize this the next time they twist open the cap on a bottle of Pepsi to cool down on a hot summer afternoon.