Seattle’s tax of 1.75 cents per fluid ounce, which took effect on Jan. 1, 2018, is charged to distributors of sugar-sweetened beverages. Distributors can pass the tax on to stores, and stores to consumers.
What is the tax on soda in Washington state?
Washington Senate Proposes Statewide Tax on Sugar-Sweetened Beverages. Washington state senators have introduced Senate Bill 5371 (SB 5371), which would impart a tax of $0.0175 per ounce on sugar-sweetened beverages that have more than 20 calories in a 12-ounce serving on beverage distributors.
Who pays the soda tax?
The soda tax is similar to and in addition to a sales tax on certain sugar-sweetened beverages. Distributors are typically responsible for paying the tax, but the cost trickles down to increased prices for consumers. Eight cities collected a soda tax as of 2020, and four of them are in California.
What states have a soda tax?
No state currently has an excise tax on sugar-sweetened beverages. Instead, soda taxes are levied locally in Boulder, Colorado; the District of Columbia; Philadelphia, Pennsylvania; Seattle, Washington; and four California cities: Albany, Berkeley, Oakland, and San Francisco.
Are soda taxes effective?
The study, which is the first to document the long-term impacts of a soda tax on drinking habits in the United States, provides strong evidence that soda taxes are an effective tool for encouraging healthier drinking habits, with the potential to reduce sugar-linked diseases like diabetes, heart disease and tooth decay …
Does Seattle have a soda tax?
Seattle’s tax of 1.75 cents per fluid ounce, which took effect on Jan. 1, 2018, is charged to distributors of sugar-sweetened beverages. Distributors can pass the tax on to stores, and stores to consumers. Proponents said the tax would reduce soda sales and raise money for health and education programs.
How much is tax in Seattle?
The minimum combined sales tax rate for Seattle, Washington is 10.1%. This is the total of state, county and city sales tax rates. The Washington sales tax rate is currently 6.5%.
Why the soda tax is bad?
Research also indicates that soda taxes are highly regressive, causing low-income households to pay nearly twice as much as the wealthy. … While the benefits of sugar taxes are often overblown, the costs to local economies are too often ignored. Higher prices and reduced sales leave businesses struggling.
Why is soda taxed?
A sugary drink tax, soda tax, or sweetened beverage tax (SBT) is a tax or surcharge (food-related fiscal policy) designed to reduce consumption of drinks with added sugar. Drinks covered under a soda tax often include carbonated soft drinks, sports drinks and energy drinks.
Is a soda tax legal?
California’s 2018 law prohibiting cities from enacting new sugary drink taxes until 2031 is illegal, according to a lawsuit filed on Monday, because it curtails local governments’ ability to raise taxes for public services.
Who pays the most on progressive taxes?
State personal income taxes are typically progressive — as incomes go up, effective tax rates go up. On average low-income families pay . 04 percent of their incomes, middle-income families pay 2.1 percent of their incomes, and the top 1 percent pay 4.6 percent.
Do soda taxes improve public health?
Soda Taxes Are a ‘No-Brainer’ for Public Health, Says the Author of a New Study on Them. A new JAMA study suggests taxing sugary drinks really can make people buy fewer of them, potentially translating to better public health.
How much money is spent on soda a year?
In 2013 U.S. households spent $14.3 billion on sugary drinks, compared to $10.7 billion on 100% juice, plain water, diet soda and other diet drinks. $6.4 billion was spent on regular soda alone in 2013, almost double the amount spent on diet soda.
Did the soda tax work?
The study also provides the first data on how beverage taxes affect children, Cawley says. The Philadelphia tax did not reduce soda consumption by children as a whole, the researchers found, but it did reduce consumption among those who were frequent soda drinkers to begin with.
Where did the soda tax money go?
Since the tax officially took effect in 2015, the revenue has funded several community nutrition and health programs, the largest single program being a gardening program at the Berkeley Unified School District.
Should the government put a tax on junk food?
With obesity and diabetes at record levels, many public health experts believe governments should tax soda, sweets, junk food, and other unhealthy foods and drinks. … By increasing the price of products that contain sugar, taxes can get people to consume less of them and thus improve nutrition and health.