Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
It's Alive! New Soda Tax Plan Would Exempt Diet Drinks, H2O
By
John Del Signore
Published May 20, 2010
Modified May 20, 2010
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
By
John Del Signore
Published May 20, 2010
Modified May 20, 2010
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Remember Governor Paterson's defeated plan to raise a billion dollars by levying a penny-per-ounce excise tax on soda and other sugary beverages? It's still in play, despite repeated cash roadblocks thrown up by the beverage industry. What brought it back from the dead this time is a compromise, floated by Paterson, that would exempt diet sodas and bottled water. The new proposal would mean less revenue for the state ($815 million) but it seems to be Paterson's best last hope to wrench that bottle of Fanta from your cold, diabetic hands. Of course, the beverage industry has a thing or two to say about this latest "compromise."
Soda industry execs say that just because there would be no tax on diet cola, that doesn't mean soda drinkers will buy it. They "worry" that if a liter of soda costs a few cents more, consumers will either abstain from their precious elixir, or cross state lines to get it on the cheap. "Critics make the presumption that people switch, but people have their preferences, which is why companies are constantly trying different innovations on products like Coke Zero and Pepsi Max," Kevin Keane, a spokesman for the American Beverage Association, tells the Times.
Speaking on background, a Paterson administration official tells the Times soda pushers "should embrace this idea. They’re interested in selling product, and this proposal would increase the sale of more diet products. Product is product." And during a radio interview this morning, Paterson himself said, "Somebody said that the soda tax was dead because it hasn't been getting much support. I haven't said that. Listen, a lot of things the legislative leaders, legislators will say are dead on arrival, but I'll tell you what, that borrowing is in the same place, as far as I am concerned. Because I am not going to leave [office] throwing my hands up saying 'Hooray For Me!' when I all I did was create greater problems for the next governor."
But despite studies showing a link between diabetes and diet soda, The Alliance for a Healthier New York is on board with the compromise. State budget estimates suggest that obesity-related ailments like diabetes cost New York taxpayers $7.6 billion a year. "It’s a win-win for New York," says Eric Koch, a spokesman for the alliance. "It’s a proven way to help reduce obesity and encourage people to lead healthier lives."
Tagged
Albany
budget
diet soda
governor paterson
paterson
soda tax
John Del Signore
Originally from the Albany area, John Del Signore has called NYC home since 1995. In addition to his thousands of meticulously-crafted bespoke blog posts for Gothamist, his writing has also been published in The Awl, Deadspin, The Nervous Breakdown, and performed at The Brick Theater in Brooklyn.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
NYC Council to consider earlier Legionella reporting after deadly outbreaks
A bill facing a hearing Monday would require cooling tower owners to notify city health officials when bacteria levels reach a much lower threshold.
By
Catalina Gonella
Published Oct 18, 2026 at 7:36 p.m. ET
Staten Island fire injures 2, but spares historic 'Godfather' church
Dozens of firefighters responded to the blaze, which started in a vacant warehouse. It was contained within three hours.
By
Giulia Heyward
News
Staten Island fire injures 2, but spares historic 'Godfather' church
Dozens of firefighters responded to the blaze, which started in a vacant warehouse. It was contained within three hours.
By
Giulia Heyward
Bail reform remains major issue in NY governor's race, 7 years after it became law
By
Gino Fanelli
NYPD identifies Bronx man, 26, killed in Midtown subway shooting
By
Ryan Kost
,
Elizabeth Kim
and
Phil Corso
Have you seen this Yorkie? NYPD looking for adorable pup dognapped from her Queens home
By
Ryan Kost
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .