Is SF facing a possible tax on soda?

SAN FRANCISCO (KGO) -- The city that banned plastic grocery bags and styrofoam take-out containers has found a new cause: your favorite soft drink. San Francisco may impose a new fee on those big retail stores that sell them. The purpose is to curb the obesity problem among kids and adults. Such fee or tax would be the first in the nation.

San Francisco says the obesity problem is costing the city too much money in health care costs. Studies have linked obesity to diabetes and heart disease.

"One third of all of our new on-set diabetics are type 2 because of obesity and this is in children now," says Robert Lustig, M.D., Endocrinologist, UCSF.

Mayor Gavin Newsom wants to tax big-box retailers for selling soft drinks with high-fructose corn syrup to off set the city's health care costs. The amount has not been determined.

According to California's constitution, municipalities can impose a tax or fee to help pay for certain local programs, such as the Mayor's fitness initiative called "Shape Up San Francisco."

Mayor Newsom cites a recent Health Department survey which found that nearly 25 percent of 5th, 7th and 9th graders were overweight. The survey also found that these high-sugar drinks accounted for 10 percent of the calories these kids consumed.

"If you are going to put into your body sugar in a soda container, it's not giving you nutrients that are good for your body to grow and learn," says Meyla Ruwin, Director of San Francisco's School Health Program.

In a statement, The American Beverage Association said the Mayor should also tax all the high-tech companies in San Francisco for their culpability in contributing to childhood obesity through their video games, computer games, and internet search engines that keep kids glued to their chair instead of outside playing and burning calories.

"I think you should leave the taxes up to other sources and allow parents to make up their minds about what their kids drink," says Matt Richter, parent.

The American Beverage Association has promised to fight Mayor Newsom's proposed fee.

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