Published on June 30, 2026
The City of Santa Cruz has prevailed in litigation challenging the City's Sugar-Sweetened Beverage (SSB) Tax, with the Sacramento Superior Court denying a petition filed by industry groups seeking to halt implementation of the voter-approved measure.(PDF, 232KB)
“The court’s ruling sends a clear message: local democracy can withstand even the deepest-pocketed opposition,” said City of Santa Cruz Vice Mayor Shebreh Kalantari-Johnson. “Santa Cruz voters made a clear choice to fund healthier futures for our kids, seniors, and families, and this decision protects that choice from a costly industry challenge. I’m proud of our city for standing its ground and leading the way for charter cities across California.”
"This ruling affirms the City's authority as a charter city to implement a thoughtfully crafted local measure that addresses local health concerns, generates local revenue, and was approved by City of Santa Cruz voters," said City Attorney Cassie Bronson. "We are pleased with the court's well- reasoned analysis and appreciate the careful consideration given to the legal issues presented in this case."
The Sugar-Sweetened Beverage Tax was approved by Santa Cruz voters to generate general revenue for the City, with an eye toward funding services and programs that contribute to community health and wellbeing.
The court is expected to enter a final judgment within the next one to two weeks. Once judgment is entered, the petitioners will have 60 days to file an appeal.
Given the nature of the litigation, the City anticipates that an appeal is likely. It is unknown how long a potential appellate process might take, as timing depends on several factors, including the timing of the final judgment, whether and when an appeal is filed, and the schedule of California’s Third Appellate District.
Until the appellate process is complete, the City will continue to defend the legality of the voter-approved tax and provide updates as significant developments occur. In the meantime, the City has established the Sugar-Sweetened Beverage Tax Oversight Committee and will continue to collect the tax in preparation for implementing initiatives to be supported by the revenue.
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