Many communities face widening health disparities linked to sugar-sweetened beverages, which contribute to preventable conditions such as diabetes, obesity, and dental disease. These issues disproportionately affect low-income and marginalized residents, straining families and local health systems. While numerous cities nationwide have adopted sugary drink taxes to address these challenges, the beverage industry has successfully blocked many local efforts to regulate them. In 2018, California passed a law effectively banning new local soda taxes statewide, leaving cities powerless to act.
The city of Santa Cruz refused to accept this status quo and leveraging their status as a charter city, the city council unanimously voted to place Measure Z on the November 2024 ballot. Measure Z imposes a two-cent-per-fluid-ounce tax on the distribution of sugary drinks within the city. Santa Cruz voters approved Measure Z by a narrow margin of 52%. The measure was achieved despite a heavily funded opposition campaign and builds on years of advocacy from youth, healthcare professionals, and community leaders.
Projected to generate $1.3 million annually, the revenue is dedicated to reinvesting in local health programs, especially those serving historically underserved neighborhoods. The tax is designed to be non-punitive and supportive—businesses receive resources to comply, and an advisory group of youth, health experts, and community members will guide spending priorities.
This policy is about more than taxing sugary drinks—it's about local governments reclaiming their power to protect public health and invest in their communities. Santa Cruz’s SSB tax stands as a replicable model for cities determined to address public health inequities, challenge powerful industry interests, and improve quality of life through local leadership and bold policy.
Impact or how it will be measured:
Evidence from other cities shows significant declines in sugary drink purchases and improvements in youth health metrics following implementation of such taxes. To assess outcomes, the city will track:
Revenue generation and reinvestment into health and wellness programs, with oversight from the advisory group.
Health outcomes over time, including rates of diabetes, obesity, and dental caries, in partnership with public health agencies and through participation in a national network of jurisdictions with similar taxes.
Business compliance through existing audit processes, with adjustments as needed.
Community engagement, ensuring those most impacted by sugary drink marketing and related health disparities have a voice in how funds are used.