A Pennsylvania Appeals court on Wednesday rejected a challenge brought by the beverage industry and a couple of consumers to the Philadelphia tax on sugary beverages. The lawsuit alleged that the soda tax violated a provision in the Pennsylvania state constitution that prohibits any duplication of the state sales and use tax, but the appeals court concurred with the lower court reasoning that since the tax is applied at the distributor level, it is not a sales tax and hence, not a duplication. And now that the tax is firmly in place, the truth is starting to emerge about the revenues being generated. Recall that the tax went into effect in January and over the first few months, Philadelphia officials were gloating over the money it was generating – exceeding estimates in each month of the first quarter. Now however, with consumers aware of the additional charge and likely buying their soda elsewhere, the revenues are coming in significantly below estimates and proceeds from the soda levy will finish the fiscal year (ends June 30) as much as $20 million below projections. Regardless, the tax is on the books, so their goal is accomplished!