The $28 Million Roadside Cola Bottle Tax

Americans for Tax Reform (ATR) strongly opposes increasing the Advance Disposal Fee (ADF) because it will cost Kentucky taxpayers an additional $27 million. State Representative and House Majority Floor Leader Greg Stumbo (D-95) sponsored B.R. 175, the bill that will cause ADF to increase by a half cent per container.

Each Kentucky resident encounters ADF an estimated 500 times annually, but because the tax is incorporated into the cost of the product, taxpayers have little knowledge of the actual burden of compliance.

ADF affects virtually all restaurants, convenience stores, bakeries, supermarkets, hotels, motels, and cafeterias, among other retailers. B.R. 175 would make businesses liable for the collection process, and will cost $12 million more in lost sales.

Grover Norquist, President of Americans for Tax Reform, commented: "This bill is an tax increase for every coffee shop and take-out. Small businesses such as these would have to keep records of every cup sold, and pay the subsequent state tax. Florida taxpayers rejected a similar tax because the administrative hassle was such a burden. I encourage Kentucky legislators to reject Representative Stumbo\\\’s attempt to thwart economic improvement in Kentucky by increasing this tax."