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BOULDER, Colo. (CBS4) – The controversial soda tax in Boulder might not bring in as much money as previously expected.

Last May, the city council approved the tax, which went into effect on July 1. It charges soda distributors two cents for every ounce of soda and other sweetened beverages.

co boulder sugary drinks 9vo transfer frame 135 Less Money Expected From Sugary Drink Tax

(credit: CBS)

The city thought it would bring in $3 million annually, but experts say they expect about half that in tax returns.

City officials say that’s partly due to the fact many people are now buying soda at liquors stores, which are exempt form the tax.

diet soda ban 1 Less Money Expected From Sugary Drink Tax

(credit: CBS)

According to Boulder County Public Health, kids who drink one sugary drink per day have a 55 percent higher risk of obesity, a 33 percent higher risk of dying from heart disease, and a 25 percent higher risk of developing Type 2 diabetes.

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