How is increased bottled water taxation (excise, sales and severance taxes) affecting the bottled water industry?
Henry R. Hidell, III: The bottled water industry has been operating in a very price-competitive market for several years now. The levies, fees and taxes that have been suggested or even approved in certain states have had a serious impact on the economic performance of water bottlers. It is most difficult on the small, local bottler who operates in a state that has passed such fees and taxes, while their larger competitors, who may operate in multiple markets, may not feel the “pinch” as much since some markets may not have such taxation. The trend of taxing water bottlers is based on a misconception by certain public bodies that the bottlers are taking a resource that belongs to everyone and wasting it or selling it at very high profits. Water bottlers are very small users of the water resource. This is particularly true when compared to beer and soft drink manufacturers. Until there is universal application to all industry users of water resources, it is my opinion that bottlers will
