By Brendan Sample

Back in June, the city of Philadelphia passed an unprecedented soda tax, championed by new mayor Jim Kenney, which charged an extra 1.5 cents an ounce on nearly all sugary beverages. The tax finally took effect on Jan. 1, and residents of Chestnut Hill have plenty to say about the controversial measure.

“It’s significantly affected business so far,” said Mike Piociuk, manager of Primo’s Hoagies. “There’s been a complete shutdown of sugary drink sales, and everyone I’ve talked to in the store is skeptical about the tax.”

Given the fact that the tax hasn’t even been in place for a month yet, it may yet be too soon to tell what kind of concrete effects it’s having on businesses in the neighborhood. While some places like Primo’s are already noticing big changes, others aren’t quite as sure.

“There’s been very little concrete effect, though we have seen less profits,” said Enzo Mandarano, owner of Cosimo’s Pizza. “We did have to discontinue giving free refills on drinks that are now taxed, which people have definitely noticed.”

As it was when the tax was initially passed about seven months ago, most people in Chestnut Hill, as well as the entirety of Philadelphia, appear to be opposed to having to pay more for some of their favorite drinks. There are still those, however, who continue to view the tax as a positive for the city.

“I’m in favor of the tax,” said Norman Rice, purchasing manager of Weavers Way. “The city has needs that the proceeds of the tax will address. I’m not sure if it’s the best way to fund the things that need to be done, but if there’s a chance, then we’re better off overall.”

This brings into question just where exactly the proceeds of the soda tax will be going. While the income was initially meant to mainly fund pre-K education, a report from the Philadelphia Inquirer noted that only 49 percent of the tax’s revenue would be serving this purpose

That percentage is still the highest of any single recipient, and it will still be providing money to community schools and infrastructure as promised, but 20 percent of the income will also be going to other city government programs, the highest of which will be employee benefits. According to Philadelphia Communications Director Lauren Hitt, however, the tax proceeds will ultimately go exclusively to pre-K, community schools and infrastructure starting in fiscal year 2020.

These shifts in the tax’s revenue destinations have not resonated well with many Chestnut Hill residents, leading to a lot of confusion over who benefits from the increased prices.

“I’m definitely skeptical about where the money’s going, and my customers have had a lot of mixed reactions,” Mandarano said.

While some business owners would simply like to do away with the tax completely, others are open to idea of reforming it with the idea of making it fairer to those it’s affecting in Philadelphia.

“I feel that everybody should just vote on a statewide program,” said Piociuk. “Change the tax so that everybody pays for it and it’s not just a way of making money.

“I’d also like to see a comparison of soda sales in Philadelphia against those outside the city. People will travel for savings.”

With Chestnut Hill being right on the Philadelphia city limits, it certainly gives neighborhood stores a different perspective on tax as opposed to places in Center City. It does stand to reason that people in general are much more likely to go outside the city when they’re already close to other areas anyway, though it does still seem to be a bit early to tell how big a difference there is between the sales figures.

With so many different angles to consider now that it’s been put into effect, the soda tax also begs the question of what else might be taxed in the future. Philadelphia hasn’t seen a tax quite this drastic before, and while many are certainly opposed to it, if it ends up bringing in enough revenue, this could be just the beginning.

“I really have no idea what the future will hold for these kinds of taxes,” Rice said. “It’s a complicated question that involves the role and degree of government in people’s lives.”

“This certainly feels like the start of more,” Mandarano said. “There’s a lot more food out there than just soda that can promote obesity.”

Brendan Sample can be reached at brendan@chestnuthilllocal.com