Mounting evidence points to a link between rising obesity rates and the growing consumption of soda and other sugar-sweetened beverages. Several states have proposed legislation in recent years to impose taxes on beverages and beverage manufacturers. But a regulatory fee may have a significant public health advantage over a tax in your state. 

Either strategy could discourage sales by raising prices for the consumer. But the revenue raised by a regulatory fee – unlike a tax – must be used for programs (such as obesity prevention and treatment programs) that mitigate the harm caused by the product.

"Using Regulatory Fees to Combat the Adverse Effects of Sugar-Sweetened Beverages" provides an overview of the science, economics, and law behind this type of fee. “Example of a Sugar-Sweetened Beverage Regulatory Fee Justification Study in California” details the criteria for levying this type of fee in California, statewide or at the city/county level.

In addition, PHLP's childhood obesity program (NPLAN) has developed Model Sugar-Sweetened Tax Legislation to help states that want to impose an excise tax on these beverages and earmark the proceeds for programs to prevent and treat obesity.