Sec. 210. Tax on sugared drinks

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Subchapter D of chapter 32 of the Internal Revenue Code of 1986 is amended by inserting after part I the following new part: Sec. 4171. Imposition of tax. Sec. 4172. Definitions. Sec. 4173. Special rules. There is hereby imposed a tax on the sale or transfer of any specified sugar-sweetened beverage product by the manufacturer, producer, or importer thereof. The rate of tax imposed under subsection

(a)shall be equal to one cent per 4.2 grams of caloric sweetener contained in such specified sugar-sweetened beverage product. The manufacturer, producer, or importer referred to in subsection

(a)shall be liable for the tax imposed by such subsection. For purposes of this part— For purposes of this part, the term specified sugar-sweetened beverage product means— any liquid intended for human consumption which contains a caloric sweetener, and any liquid, or solid mixture of ingredients, which— contains a caloric sweetener, and is intended for use as an ingredient in a liquid described in subparagraph (A). The following shall not be treated as liquids described in paragraph (1)(A): Any liquid the primary ingredients of which are milk or soy, rice, or similar plant-based milk substitute. Any liquid composed entirely of one or more of the following: The original liquid resulting from the pressing of fruit or vegetables. The liquid resulting from the reconstitution of fruit or vegetable juice concentrate. The liquid resulting from the restoration of water to dehydrated fruit or vegetable juice. Infant formula. Any liquid products manufactured for use as— an oral nutritional therapy for persons who cannot absorb or metabolize dietary nutrients from food or beverages, a source of necessary nutrition used due to a medical condition, or an oral electrolyte solution for infants and children formulated to prevent dehydration due to illness. Any liquid with respect to which tax is imposed under chapter 51 (relating to distilled spirits, wines, and beer) or under section 7652 by reason of the tax imposed under chapter 51 being imposed on like articles of domestic manufacture. For purposes of this part, the term caloric sweetener means monosaccharides, disaccharides, and high-fructose corn syrup. In the case of any specified sugar-sweetened beverage product which is manufactured or produced by including one or more other specified sugar-sweetened beverage products, no tax shall be imposed under this section on any caloric sweetener contained in the resulting specified sugar-sweetened beverage product if tax was previously imposed under this section on such caloric sweetener when contained in the specified sugar-sweetened beverage product so included. In the case of any sale after December 31, 2015, the one cent amount in section 4171(b) shall be increased by an amount equal to— such amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such sale occurs, determined by substituting calendar year 2014 for calendar year 1992 in subparagraph

(B)thereof. Any increase determined under this subsection shall be rounded to the nearest multiple of one-tenth of a cent. . Section 4221(a) is amended by adding at the end the following: Paragraphs (1), (4), (5), and

(6)shall not apply to the tax imposed under section 4171. . The table of parts for subchapter D of chapter 32 of such Code is amended by inserting after the item relating to part I the following new item: Part II—Sugar-Sweetened beverages . There are hereby appropriated to the Prevention and Public Health Fund created under section 4002 of the Patient Protection and Affordable Care Act (in addition to any other amounts appropriated to such Fund) amounts equivalent to taxes received in the Treasury under part II of subchapter D of chapter 32. Rules similar to the rules of section 9601 of the Internal Revenue Code of 1986 shall apply with respect to amounts appropriated under this paragraph. Notwithstanding subsections

(c)and

(d)of section 4002 of the Patient Protection and Affordable Care Act, amounts appropriated to the Prevention and Public Health Fund under paragraph

(1)may be transferred to accounts in the Department of Health and Human Services only for the purpose of making expenditures for programs and research designed to reduce the human and economic costs of diabetes, obesity, dental caries, and other diet-related health conditions in priority populations (within the meaning of section 901(c) of the Public Health Service Act). Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act. The amendments made by subsections

(a)and

(b)shall apply to sales after the date of the enactment of this Act.