Philadelphia's tax on soda upheld by state Supreme Court
National Legal News
Pennsylvania's highest court is upholding Philadelphia's tax on soda and other sweetened drinks, rejecting a challenge by merchants and the beverage industry.
The Supreme Court ruled Wednesday the 1.5-cent-per-ounce levy is aimed at distributors and dealer-level transactions and does not illegally duplicate another existing tax.
Both dissenting justices say the tax does duplicate taxes already in place on retail sales of soda in the city.
The beverage tax raised nearly $79 million in 2017, over its first 12 months in place. If fully passed on to consumers, the soda tax represents an increase of $1.44 on a six-pack of 16-ounce bottles.
Philadelphia Mayor Jim Kenney, a Democrat, hailed the ruling.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
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