The soda industry and a collection of Philadephia residents and businesses sued the city to block a new tax on sodas.
The American Beverage Association argued in its lawsuit that the new tax that goes into effect next year violates federal and state rules, according to a report in Philly.com.
The city passed the tax in June. It will add 1.5 cents per ounce to the cost of most regular and diet sodas. Philadelphia is the first major U.S. city to levy such a tax.
The group, which argues that the new levy is a type of sales tax, wants the lawsuit to reach the state Supreme Court. The lawsuit argues that the soda tax is pre-empted by state sales taxes and therefore violates state law, the report added.
In addition, products purchased by food stamps are exempt from sales taxes, so the lawsuit noted that implementing a soda tax on products bought by the stamps would violate state and federal rules, the report said.
