Advocates have encouraged excise taxes25 – defined as ‘a duty or
impost levied upon the manufacture, sale or consumption of
commodities’.50 An excise tax would be imposed on the beverage or
syrup manufacturer, in contrast to a sales tax that is imposed on the
retail purchase price. Excise taxes are easier to enforce and collect, and
would apply to all beverages with added sugars, including energy
drinks. An excise tax increases the base price of the product. In
contrast, a sales tax is imposed at time of payment, which occurs after
most consumers have decided to purchase the product. This encourages
the purchase of larger containers, and would not impact the cost of free
refills.