Politics & Government

Beverage Industry: Bottle Tax Impact Felt Beyond Baltimore

Supporters of the beverage tax argue that opponents have not proved an increase will impact jobs.

If Baltimore City decides to increase its "bottle tax," it could have consequences beyond the city’s boundaries.

According to Phil Swanson, general manager and vice president of Canada Dry Potomac Corp., if the city decides to increase its bottle tax 150 percent, it could negatively impact businesses and jobs in Baltimore and Anne Arundel counties.

He said the 2-cent bottle tax already implemented by the city has driven down business in Baltimore, which is bad news for an industry that hasn’t experienced much growth in recent years.

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“Our business is down 10 percent and we attribute that directly to the tax,” Swanson said. 

On Wednesday the Baltimore City Council’s Taxation, Finance and Economic Development Committee will hold a hearing on legislation raising the tax to 5 cents and repealing the sunset clause applied for the original tax that is set to expire in 2013.

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If the tax passes, it could have negative consequences for the 135 employees at Canada Dry’s sales center in Glen Burnie, and especially for the 45 full time employees at its production plant in Sulphur Springs.

Swanson said if the bottle tax is passed they might consider shipping production to a larger facility in New Jersey, and closing the Sulphur Springs site.

"It’s not something that we’ve predetermined, but something that would be part of the business model we’ll be closely scrutinizing," Swanson said.

But supporters of the bottle tax will also be pushing hard for a tax they believe is necessary to help pay for the $1.2 billion in school construction and improvements needed in Baltimore.

Supporters have been skeptical of claims from the beverage industry that the tax would result in job losses, and say a study done by Sage Policy group on why a bottle tax is detrimental far from comprehensive.  

"I don’t buy it. I’d love to see the details on that," said Rev. Andrew Foster Connors, co-chair of BUILD.

Foster Connors said anecdotally that the people he has spoken to in the city would be willing to pay the tax, as long as it’s guaranteed to go to schools.

"What I’m hearing in the city is that the people in the city are happy to pay 5 cents more if they’re assured the money is going toward rebuilding our schools," Foster Connors said.

Some bottle tax supporters, such as Transform Baltimore’s Bebe Verdery, who said that bottle tax opponents have yet to put forward another suggestion for how the city can generate the needed revenue for new schools without a tax.

"A vote against [the bottle tax] is a vote for the status quo," Verdery said. 

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