Lincoln Senator Looks to Apply Sales Tax to Soda - KHGI-TV/KWNB-TV/KHGI-CD-Grand Island, Kearney, Hastings

A Lincoln senator is looking to close the loophole that has soda considered a tax-exempt food.

Sen. Bill Avery says that the sales tax exemption for soda is illogical and indefensible. He argues that as soda has no nutritional value it shouldn't be in the same tax-exempt category as food.

Avery filed a similar bill last year but it never reached the floor for debate.

It's estimated that ending the exemption would bring the state an estimated $11 million in new sales tax revenue.

Avery's bill would have 70 percent of the new revenue used for school wellness programs and data collection and 30 percent would go to local health departments for health-related issues.