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Philadelphia became the first major US city with a soda tax Thursday despite a multi-million dollar campaign led by the beverage industry to block it. City Council has finally agreed to a tax of 1.5 cents per ounce on sweetened beverages. (June 1st
AP

According to a new study, soda sales have dropped in Philadelphia as a result of the introduction of a tax on these products.

A study published in the Journal of the American Medical Association revealed that the city's new tax had resulted in a "significant and substantial decline" in soda sales.

The results also show that the tax has crushed sales of soda in the city of Philadelphia while boosting sales in nearby areas, customers seeking to avoid the levy.

Overall, sales fell by 38% even taking into account the rise in neighboring areas, according to the study.

According to the study, buyers in the Philadelphia area bought nearly a billion ounces of soda in 2017 compared to 2016.

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The result could influence policy makers who are considering similar measures in other jurisdictions.

The Philadelphia soft drink tax came into effect in 2017. (Photo: Rich Pedroncelli, AP)

Proponents say the tax on soft drinks effectively discourages the unhealthy consumption of sugary drinks, potentially fighting obesity and other conditions. Opponents say that it disproportionately hurts low-income people, harms businesses and is an inappropriate infringement of consumer rights.

The tax, which came into effect in early 2017, raises it to 1.5 cents an ounce on sweetened drinks or artificially sweetened drinks. That translates to 30 cents for a 20 ounce bottle and about a dollar for a liter.

Sales in the city of Philadelphia fell 51%. Sales in nearby areas increased by 43%.

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The authors of the study are Christina Roberto and Michael LeVasseur from the Perelman School of Medicine at the University of Pennsylvania and Hannah Lawman of the Philadelphia Department of Public Health.

They examined 291 stores, including supermarkets, mass merchandisers and pharmacies. They used the city of Baltimore as a control group to take into account other factors unrelated to the tax.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

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