NY floats tax on energy, sports drinks

New York Gov. David Paterson proposes a state excise tax of about one cent per ounce on sugary beverages including sodas, energy drinks and sports beverages. The measure in the 2010-2011 executive budget 1proposal, released Jan. 19, drew ire from the American Beverage Association and New Yorkers Against Unfair Taxes, a coalition of retailers and food distributors. Public health advocates and researchers support such a tax to combat obesity (2"The Tan Sheet" April 13, 2009, In Brief). The proposed tax excludes infant formula and "dietary aids," though it does not specify where liquid dietary supplements fall. Many energy drinks are labeled as supplements, which likely led to a recent FDA draft guidance delineating conventional beverages from legitimate supplement products (3"The Tan Sheet" Dec. 14, 2009)