A group of retailers is appealing a judge’s decision to dismiss a lawsuit that temporarily blocked Cook County’s sweetened beverage tax.
The penny-per-ounce tax, originally slated to begin July 1 but delayed by the lawsuit, went into effect Wednesday.
The Illinois Retail Merchants Association announced Tuesday that it is “appealing whether the judge used the correct standards in granting … Cook County’s motion to dismiss.” Cook County Circuit Judge Daniel Kubasiak issued his ruling Friday.
The tax applies to both sugar- and artificially sweetened drinks. Drinks in bottles, or from fountain machines, are taxable. But on-demand, custom-sweetened beverages, such as those mixed by a server or barista, aren’t subject to the tax.
The merchants group sued the county, alleging the tax violates a clause in the state constitution requiring uniform taxation of similar products.
Kubasiak ruled that the tax was within the county’s authority and did not violate the state constitution.
Rob Karr, chief executive of the merchants association, said in a statement that the group is appealing “to protect retailers and consumers against this tax whose rules and regulations have continuously evolved throughout this process.”
Retailers are urging the court to block the ordinance due to the lack of clarity in how to properly apply and administer the tax, he said.
Frank Shuftan, spokesman for Cook County Board President Toni Preckwinkle, said the county “always anticipated a lengthy legal battle, so this comes as no real surprise.”
“We will continue to vigorously defend the ordinance and expect to prevail, as we did in the initial round of hearings,” Shuftan said in an email.
One of several soda taxes popping up nationwide, the Cook County tax has been championed by Preckwinkle and was approved by commissioners last fall.
The county has been expecting the tax to bring in $67.5 million this year and $200.6 million in 2018.
The merchants group is asking the 1st District Appellate Court to reverse the Circuit Court’s ruling.
Twitter @beckyyerak
