Mayor Stephanie Rawlings-Blake signed the city's , part of her Better School Initative, into law on Tuesday.
The tax hike will increase the tax charged to residents on items such as bottles of soda and water to 5 cents a bottle.
The tax, paired with 10 perent of anticipated revenue from a proposed slots casino in the city, is supposed to help the city leverage $300 million for school construction and renovation.
Baltimore City Public Schools also unveiled the findings of the Jacobs Study of its school facilities. The report found that the city will need to raise $2.5 billion to address the issues with its public education facilities.