In-Limbo Soda Tax Will Spur 1,100 Cook County Layoffs, Officials Say

CHICAGO - More than 1,100 area layoffs are anticipated after Cook County's penny-per-ounce soda tax did not go into effect as planned on July 1, officials say.

A Chicago Tribune report cited County Board President Toni Preckwinkle this week in saying that some county workers will begin receiving their layoff notices soon.

"The county was counting on raising $67.5 million with the tax through Nov. 30 and had warned that cuts were possible without it," the story said.

County officials have estimated that the added fee would generate around $200 million annually. Circuit Judge Daniel Kubasiak canceled a Wednesday hearing on the case and extended through July 21 a temporary restraining order against the soda tax that he issued in June.

"The Court is fully aware of the importance of the tax to Defendant's budget," Kubasiak wrote when first granting the order. "However, the Court believes it is necessary to maintain the status quo in order to protect the interests of all consumers, all taxpayers, and the effected merchants."

The request for the temporary injunction was part of a lawsuit by retailers, who contend the tax is unlawful and vague. The Illinois Retail Merchants Associations, along with several area grocers, are the filers.

The suit claims the county tax lacks uniformity when it comes to its application, according to the Chicago Sun-Times. For instance, a bottled coffee drink sold in a store would be taxed, but a similar beverage made by a coffee shop employee wouldn't the report added. That type of inconsistency, the lawsuit argues, violates the Illinois Constitution.

More on this story:

• Cook County Soda Tax Temporarily Put On Hold By Judge
• Is a Sweetened Drink Tax in Cook County a Sour Idea?

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