Chicago Bottle Water Tax Trickling In---First in Nation Tax Has People Running to the Suburbs to Beat the Tax

Chicago Mayor Richard M. Daley (D) now is faced with millions in budget cuts because the nation's first tax on bottled water is only "trickling" in.  The 5 cents a bottle tax took effect in January and was suppose to bring in $10.5 million in revenue.  To date, the city has collected $2 million and the city has a $20 million shortfall.

According to Budget and Tax News, local business people and bottled water industry officials told the mayor and city council it would not work.   "We're not surprised, said Tim Bramlet, executive director of the Illinois Beverage Association. "When people are used to paying $4 a case and suddenly the price goes to $5.20, they respond."  Where people would buy two cases, they now buy one.  Or, they'll buy their bottled water outside the city limits.   Bramlet said:  "The city ignored this.  They just put their heads in the sand."

Hopefully, Seattle, other Washington cities and the state will learn from the Chicago experience.

Don C. Brunell, President (DonB@awb.org)