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Santa Fe voters reject soda tax, hand rare win to industry

Pre-kindergarten teacher Shanel Rosetta, 23, of Albuquerque (left, foreground), makes calls to registered voters from a union hall in Santa Fe, N.M., on Tuesday, May 2, 2017, urging them to vote in favor of a tax on sugary sodas and other sweetened beverages. Voters in New Mexico's capital city were deciding whether to add a tax on sugary sodas and other sweetened beverages that would follow the examples of several cities across the country. The proposed tax in Santa Fe would pay to expand early childhood education. (AP Photo/Morgan Lee)
Pre-kindergarten teacher Shanel Rosetta, 23, of Albuquerque (left, foreground), makes calls to registered voters from a union hall in Santa Fe, N.M., on Tuesday, May 2, 2017, urging them to vote in favor of a tax on sugary sodas and other sweetened beverages. Voters in New Mexico's capital city were deciding whether to add a tax on sugary sodas and other sweetened beverages that would follow the examples of several cities across the country. The proposed tax in Santa Fe would pay to expand early childhood education. (AP Photo/Morgan Lee) Pre-kindergarten teacher Shanel Rosetta, 23, of Albuquerque (left, foreground), makes calls to registered voters from a union hall in Santa Fe, N.M., on Tuesday, May 2, 2017, urging them to vote in favor of a tax on sugary sodas and other sweetened beverages. Voters in New Mexico's capital city were deciding whether to add a tax on sugary sodas and other sweetened beverages that would follow the examples of several cities across the country. The proposed tax in Santa Fe would pay to expand early childhood education. (AP Photo/Morgan Lee)

By Associated Press 3 min read

SANTA FE, N.M. (AP) – Voters in New Mexico’s capital city rejected a tax increase on sweetened beverages Tuesday, handing a rare victory to the soft-drink industry after a string of recent defeats.

The tax failed with 11,533 votes against and only 8,382 votes in favor, the Santa Fe City Clerk’s Office announced.

The special election came after similar taxes were adopted last year in cities from Philadelphia to San Francisco. Outside groups and political committees spent more than $3 million on the special election in Santa Fe, with opponents led by the soft-drink industry and supporters by billionaire Michael Bloomberg, a staunch supporter of taxes on sugary beverages.

A variety of sugar-sweetened beverages would have fallen under the tax, including sport drinks such as Gatorade, iced teas, caffeinated energy drinks and lemonade, while diet soda and pure juices were exempt.

Santa Fe’s tax measure thrust the city into two far-reaching debates about affordable preschool and sugary drinks. Proponents of the tax, including Santa Fe Mayor Javier Gonzales, said it was needed to expand high-quality preschool to 1,000 children whose families cannot afford or find it – and improve public health in the process by discouraging the heavy consumption of sugar.