SANTA CRUZ — The American Beverage Association, alongside a group of grocers, retailers and restaurant owners, filed a lawsuit Wednesday against the city of Santa Cruz in Sacramento Superior Court, challenging the city’s recently enacted sugar-sweetened beverage ta x.

The plaintiffs argue that the city’s tax conflicts with state law and violates the California Constitution. They are asking the court to declare the tax unenforceable and to require the city to refund all money collected from the tax since it went into effect earlier this month.

The firm Latham and Watkins LLP filed the lawsuit on behalf of the plaintiffs: the American Beverage Association, California Hispanic Chambers of Commerce, California Alliance of Family-Owned Businesses, California Chamber of Commerce, California

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