News and Commentary

Seattle’s New ‘Sweetened Beverage Tax’ Causes Prices To Skyrocket

Frank Camp

On January 1, Seattle’s “sweetened beverage tax” (CB 118965) went into effect. The ordinance places a tax of $0.0175 per ounce on sugary beverages like soda, sports drinks, iced teas, and “other products with added caloric sweeteners.”

There are minor exceptions. If a business earns a “worldwide gross income” between $2 million and $5 million annually, they will be charged only $0.01 per ounce. Additionally, some drinks are exempt from the tax. Beverages “consisting of 100 percent natural fruit or vegetable juice with no added sweetener,” beverages containing fewer than 40 calories per 12-ounces, and diet beverages enhanced with zero-calorie artificial sweeteners, will not face the tax, according to Seattle.gov.

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