Yes but the bottled water tax could be used to fund improvements in infastructure.
We need the money for better municiple water systems, sewers, roads, bridges, etc... But most importantly, we need the money for Education.
The tax also should be assessed on the distribution companies so that is not obvious to the consumers--Just like the tax on gas, cigarettes, etc...: We don't want the consumers to realize that much of the cost of their water is going to the already bloated Federal Budget.