Bottled water tax challenged
Retailers are fighting Chicago's new tax on bottled water. Industry groups allege the 5-cent-a-bottle tax is unconstitutional in a lawsuit filed Friday in Cook County.
Chicago's one of first big U.S. cities to adopt such a tax. It took effect on New Year's Day. Proponents say taxing plastic bottles will encourage people to drink tap water, thereby reducing nonbiodegradable waste that damages the environment.
But the lawsuit argues the tax unlawfully targets one product, violating a uniformity clause in Illinois' constitution.
It also says the tax will hurt Chicago businesses by driving grocery shoppers to the suburbs. The four plaintiffs include the American Beverage Association and the Illinois Retail Merchants Association.p>
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