Philadelphia's soda tax is falling flat — for the city, at least.
The city started taxing sweetened drinks at 1.5 cents per ounce this year after a contentious debate. The tax was billed as a way to fund community schools, prekindergarten programs, recreation centers, libraries and parks. However, revenue expectations have fallen short every month since the tax took effect in January.
Based on preliminary estimates, the tax generated $39.3 million in revenue through the end of June. That's about 15 percent short the city's original projection of $46 million, and just under its revised estimate of $39.7 million.
A new study from market research firm Catalina found people in Philadelphia are still buying sugary drinks, but they're traveling outside city limits to stock up.