Update 8.2.2017: The lawsuit that was preventing the Cook County Sweetened Beverage Tax from taking effect has been dismissed. Retailers must begin collecting the tax as of August 2, 2017. Additional information.

A penny-per-ounce tax on sweetened beverages was set to go into effect in Cook County, Illinois, on July 1, 2017. At the last moment, however, the tax was stayed by a Cook County Circuit Court. It will remain under a temporary restraining order (TRO) until further notice.

The Illinois Retail Merchants Association and others argue that the tax is both unconstitutional and too vague. They also say the penalties for non-compliance are too extreme: those who fail to collect and remit it will be fined $1,000 for the first offense, and $2,000 for all subsequent offenses.

Cook County Board President Toni Preckwinkle maintains “revenue from the tax is critical” to a balanced budget. She expressed disappointment with the ruling, saying, “We must immediately look at holdbacks, efficiencies, and … a substantial number of position reductions each month that collection of the tax is delayed.” The board will “aggressively defend" the ordinance.