Santa Cruz Soda Tax Preempted by State Law, Complaint Alleges

May 30, 2025, 10:10 PM UTC

Businesses that sell sugary drinks asked a California trial court to strike down Santa Cruz’s soda tax, arguing it runs afoul of a state law banning localities from taxing groceries.

“Where a charter city’s law conflicts with a state law that addresses a matter of statewide concern and is narrowly tailored to that concern, the local law is preempted,” groups led by the California Grocers Association told the California Superior Court for Sacramento County in a complaint filed Thursday. “A law that is preempted by state law is invalid.”

  • Santa Cruz voters approved Measure Z establishing a beverage tax of ...

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