Bill introduced to tax sweet tooths

Rep. Felicidad Ogumoro (R-Saipan) is introducing a “Health Impact Tax bill” that will tax sugar-sweetened beverages and sugar-sweetened concentrate.

Ogumoro says she is targeting the alarming rate of non-communicable diseases, or NCDs, in the CNMI.

“Following months of work and additional input from members of the NCD Alliance, I am pleased to introduce a bill targeting one of the biggest culprits contributing to high NCD rates in our community—sugar sweetened beverages,” said Ogumoro in a statement.

“Non-communicable diseases cause a significant loss in longevity, quality of life, and loss to workforce productivity in the CNMI. The current generation is dying prematurely or losing functionality because of non-communicable diseases thereby curbing human capital and crippling the economy. The costs of off-island medical referrals, hemodialysis, cancer treatment, and the burdens on CNMI families are exorbitant,” Ogumoro said.

Ogumoro says the bill will prevent and control obesity and associated diseases by establishing a fee to discourage excessive consumption of sugar-sweetened beverages sold in the Commonwealth; designate the fees to be used in programs to prevent and control obesity and its co-morbidities; and assist the Commonwealth Healthcare Corp. to meet and satisfy its debts with the Marianas Public Land Trust.

The bill will assess a $0.04 per ounce tax on all sugar-sweetened beverages, as well as on syrups and powders which contribute to the largest volume of sugar-sweetened beverage produced from the use of said syrup or powder.

The bill establishes a “Special Healthcare Impact Account.” The Secretary of Finance shall collect all revenues from the Health Impact Tax, and deposit collections into the Special Healthcare Impact Account. The bill states that 25 percent of the revenues collected will be deposited to the Diabetes Maintenance program, for programs to lower rates of obesity and diabetes and increase diabetics’ capacity to manage their condition.

According to the bill, 25 percent of revenues collected will be deposited in a fund for community health grants, intended to be used towards community based prevention and research projects, which shall be administered by the Division of Public Health. The bill also said 50 percent of revenues collected shall be designated and appropriated continuously for the purpose of paying, debt service, inclusive of principal and interest, of the Commonwealth Healthcare Corp. to the Marianas Public Land Trust.