Seattle passes ‘soda tax’ on sugary drinks
20-oz. energy drink or coffee concoction will cost 35 cents more
In another blow to the softdrink industry, Seattle is going to become the latest city to tax sweetened beverages — and even hometown icon Starbucks will be swept up in the new law.
The Seattle city council has approved a plan to levy a 1.75cent-per-ounce tax — that’s 35 cents on a 20-ounce drink — on beverages such as sugary energy or sports drinks and fizzy sodas. It is set to take effect Jan. 1.
The city now joins other municipalities that have approved what have been dubbed soda taxes, including Philadelphia; Berkeley, Calif.; Boulder, Colo.; and Cook County, Ill., which includes Chicago. It’s a growing movement that has alarmed softdrink makers such as Coca-Cola and Pepsico.
Starbucks shoppers won’t get hit with tax when they buy plain coffee, but it could come into play on drinks that come with sweet- ening. “A frappuccino would be affected. Iced tea would be affected. Iced coffee would be affected if it has a sweetener,” company spokeswoman Sanja Gould explained.
The coffee giant has urged customers to call or email the city council. It said in a statement that it has “informed city officials that we are concerned about the harmful economic impact this measure will have on the hundreds of Seattle coffee shops, beyond just Starbucks, and their customers.”
The Seattle tax includes syrups used to make drinks, such as what’s put into soda fountains, according to city spokesman Benton Strong. One exception is syrup used for in-store drinks that are milk-based. Diet soda, alcohol, infant formula, unsweetened 100% fruit or vegetable juices are also not included on the roster of taxable beverages.
Jennifer Cue, CEO of the Seattle-based craft soft-drink company Jones Soda, isn’t buying it.
“It’s targeting and vilifying one industry to appear to look like you’re trying to solve the obesity issue, but it’s really a revenue grab. If it’s a sugar issue, it should be on all sugar products,” she said.