Looking to balance the state's budget, Michigan Governor Jennifer Granholm is considering a bottled water tax. She has proposed a 1 cent tax on the sale of bottled water. Chicago has been collecting a 5 cent tax on bottled water since 2008. But the proposed tax in Michigan is already being challenged by the International Bottled Water Association, of course. They're calling it unconstitutional because of a 35-year-old amendment to the state's constitution that exempts food products from sales or use tax. We're sure they're also calling it bad for business--in a cash-strapped economy like Michigan's, every penny counts and one cent could be the last straw for residents on the fence about bottled versus tap.
Unfortunately, many state politicians already have little faith that the bill, which also adds 25 cents to the cigarette tax and charges a six percent tax on entertainment, ticket and spa purchases, will be passed. Even so, with more and more talk about a federal tax on soda and charging a tax on high-fat, sugary foods, bottled water taxes could gain momentum in the future. And we can't forget that here in New York, a deposit is expected to be collected for bottled water beginning this fall.
Image credit: Alanna@VanIsle on Flickr under a Creative Commons License
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