Taxes on sugary drinks have become increasingly common in recent years. In June 2018, the Legislature passed a law (Chapter 61 of 2018 [AB 1838, Committee on Budget]) prohibiting local governments from levying such taxes (and other taxes on groceries) through 2030. The law stated the Legislature’s intent to regulate the imposition and collection of such taxes to the exclusion of local action. As such, the Legislature may face the following decisions: (1) Should the state levy an excise tax on sugary drinks? and (2) If so, how should the tax be designed? This report provides information and perspectives for the Legislature to consider as it weighs these choices.