January 27, 2006
Last year, New York State Assemblyman Felix Ortiz (D-Brooklyn) introduced legislation to impose a special sales tax on certain foods and beverages, videos, movie tickets and television advertising for these products. The revenues raised by the new tax would be used for various childhood obesity programs. At a breakfast meeting today, Assemblyman Ortiz announced that he would make a major push this year for the bill he referred to as his “fat tax” bill.
Ortiz can be a persistent advocate for his legislation against considerable opposition. For example, he was able to push legislation through the New York General Assembly last year to ban the use of cell phones while driving.
The Ortiz bill, Assembly Bill 5665, was referred to the Assembly Ways and Means Committee. There is no companion bill in the Senate. Assemblyman Ortiz has been very active on childhood obesity issues and introduced similar legislation in 2003. The text of the bill is available here.
As introduced, the Ortiz bill would require an additional ¼ of one percent sales tax on: food and drink, currently taxed, except for bottled water; the sale and rental of video and computer games, and video game equipment; and the sale and rental of video and DVD movies. There would also be a new 1 percent sales tax on untaxed food and drink that are defined as sweets or snacks according to the federal National Nutrient Database for Standard Reference, and on admission to movie theaters. Corporations would be precluded from deducting from income their New York share of advertising expenditures on these products on television shows primarily watched by children under 18.
ANA is working closely with our food company members and other industry groups to oppose advertising taxes or advertising restrictions to address concerns about obesity. We are urging policymakers to focus on nutrition education and more physical education in the schools, rather than marketing restrictions. We are also working to proactively address concerns about childhood obesity through the Ad Council and the Children’s Advertising Review Unit (CARU).
We will contact the members of the Assembly Ways and Means Committee to express our opposition to the Ortiz bill.
We will be back in touch if hearings are scheduled or there is movement on the Ortiz bill. If you have any questions or more information about this matter, please contact Keith Scarborough, Vice President for State Government Relations in ANA’s Washington, DC office at kscarborough@ana.net or (202) 296-1883.