Berkeley voters appear to have overwhelmingly favored a proposition that seeks to double the city’s tax on the distribution of sugary drinks and marginally supported a sales tax that would increase the aggregate sales tax in the city to 10.75%, preliminary voting results suggested Tuesday.
Measure AA is a citizen initiative measure that seeks to increase the city’s tax on sugar-sweetened drinks from 1 to 2 cents per fluid ounce starting in April 2027.
If the measure receives a simple majority and passes, it will generate an additional $2.2 million in revenue annually, which will be used to fund community health initiatives and nutrition education.
Measure V, the sales tax measure, was placed on the ballot by the City Council and needs a simple majority to pass. If approved, the tax is estimated to generate between $9-10 million annually to help backfill the city’s $30 million annual budget deficit.
According to early results Tuesday evening, 77.1% of counted votes have been in favor of Measure AA, and 51.9% in favor of Measure V.
In the argument written in favor of Measure AA, proponents note that sugary drinks are the largest source of added sugar in the American diet and contribute to heart disease, Type 2 diabetes and tooth decay.
“Measure AA helps Berkeley continue investing in practical, community-based solutions that protect our kids and prepare them for a healthier future,” the argument reads.
But opponents questioned whether health and education programs funded by Measure AA revenue will be held sufficiently accountable for their outcomes.
“Taxing sweet drinks an additional 1 cent per ounce may further cut Berkeley purchases while sending more folks to the untaxed Richmond Costco and elsewhere,” the argument said. “That’s not good for anyone.”
If Measure V passes, the half-cent increase would align Berkeley’s aggregate sales tax with most of Alameda County, including Oakland. Statewide, sales tax rates range from 7.25% to as much as 11.25%, according to the California Department of Tax and Fee Administration.
If the sales tax isn’t approved, 33 positions across multiple city departments could be eliminated in the 2028 fiscal year, according to City Manager Paul Buddenhagen’s report to the City Council.
“Years of state takeaways of local funding from California’s cities and recent cuts by the federal government means Berkeley is facing a structural deficit,” the argument in favor of Measure V reads. “Your Yes on V would prevent forced cuts on Fire and Police Departments from the recent budget shortfall.”
But opponents said in an argument against the measure that the proposed tax hike during an affordability crisis targets the economically vulnerable residents of Berkeley.
“Before asking taxpayers to approve another regressive tax,” the argument reads, “City Council should demonstrate disciplined budgeting, prudent spending and accountability for the dollars it already receives.”