Philadelphia is the first major city to pass a tax on sodas and other beverages with high sugar content.
The new law will assess a 1.5 cents per ounce tax on all sugary beverages, reports Philly.com.
After the law passed, Mayor Jim Kenney called it "a historic investment in our neighborhoods and our education system."
The law comes at a time when the nation's obesity rate is at its highest levels. The CDC says 38% of women and 17% of teenagers are morbidly overweight.
Nutritionists and researchers blame sugary beverages such as sodas for boosting the obesity epidemic among women children.
The law does not cover baby formula and products that contain more than 50% milk, fruit, or vegetable juice.
The law will affect major distributors first, then eventually trickle down to consumers at the point of sale.
Thanks to loyal reader Django for the tip.