SANTA CRUZ – With the ultimate certification of votes by the Santa Cruz County Clerk Tuesday afternoon, the ballot initiative in town of Santa Cruz became generally known as Measure Z, or Tax on sugar-sweetened beverageshas officially passed.
According to the Santa Cruz County Elections Department, 15,780 votes were counted in favor of the ballot initiative, or about 52%, and 14,364 votes, or about 48%, were counted against passage of Measure Z.
The “Yes on Measure Z for a Safe and Healthy Santa Cruz” campaign was led by Santa Cruz City Council members Martine Watkins, Sonja Brunner and Shebreh Kalantari-Johnson, who expressed their gratitude to community members, volunteers and organizations that supported the efforts.
“We are incredibly proud of the hard-fought campaign for Measure Z and are deeply grateful to Santa Cruz voters for their support,” Watkins said. “This victory represents a shared commitment to public health, community well-being and the power of local democracy.”
Kalantari-Johnson added, “Even though corporate special interests spent $1.9 million to our $85,000, the people of Santa Cruz remained strong and made their voices heard. This result is a testament to the strength of community organizing, the commitment of community leaders and the commitment of our residents to creating a healthier future for all.”
Steve Maviglio, spokesman for the opposition group Campaign for an Affordable Santa Cruz, noted that the race was close and the measure passed with about 1,400 votes, and that the tax could face legal challenges in the long run.
“This matter is governed by state law, and the law says that local taxes on food are illegal in California,” Maviglio said. “The fact that the vote is so close shows that voters in even California’s most progressive communities are resisting a regressive tax that hurts working families, local businesses and their employees. This is no surprise given the strong support for the statewide ban on local grocery taxes that lawmakers passed in 2018, and we are grateful to the progressive leaders, unions, small business owners, students and residents who have come together to keep Santa Cruz affordable and reject this unfair tax.”
The history of the The city's tax on sugar-sweetened beverages dates back to 2018 when a ballot initiative advocated by Watkins and others for a 1.5-cent-per-ounce tax on sugary drinks was approved by the Santa Cruz City Council to be voted on by city residents in November.
The initiative was terminated two days later when then-Gov. Jerry Brown signed the Keep Groceries Affordable Act into law in June 2018, stopping taxation of groceries until 2031, and included a punitive provision that might deprive a city of all sales and use tax revenue if a charter city attempted to enact a grocery law. associated tax comparable to a soda tax.
After the law passed, then-Santa Cruz City Manager Martin Bernal proposed removing the measure from the 2018 ballot out of fear of punishment, and it was struck down by the City Council.
A lawsuit was filed in 2020 by Jarvis, Fay & Gibson, LLP on behalf of Watkins and Fresno-based nonprofit organization Cultiva La Salud. ChangeLab Solutions and the American Heart Association also supported the legal motion. In the autumn of 2021, the Sacramento County Superior Court ruled that the penalty provision of the Keep Groceries Affordable Act was unconstitutional and unenforceable. The state then appealed the court's decision.
Following the passage of the initiative, dealers of sugary drinks in town of Santa Cruz will now be paid a general excise tax of two cents per fluid ounce, with a small business exemption for dealers with gross annual sales of lower than $500,000. Some beverages are exempt from the tax, comparable to those containing fewer than 40 calories per 12 fluid ounces of beverage, dairy products, beverages with natural sweeteners comparable to honey, baby food, alcoholic beverages, and beverages intended for medical use or as a meal alternative.
The tax is estimated to herald about $1.3 million annually to town's general fund. Tax revenue shall be allocated by a yet-to-be-established seven-member municipal oversight board made up of members from areas comparable to health and education.
“Together we can build a future where the health of our children and neighbors is more important than corporate profits,” Watkins said. “Many thanks to everyone who accompanied us on this journey. This victory belongs to Santa Cruz and it reflects the best we can achieve when we work together.”
Official Santa Cruz County election results will be found at votescount.santacruzcounty.gov.
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