The Seattle Soda Tax and its Impact The volume sold of taxed drinks fell by 22% No change occurred in volume sold of taxed drinks in Seattle’s 2-mile border area, suggesting no cross-border shopping.
How does Seattle sugar tax work?
The Sweetened Beverage Tax is not a sales tax charged directly on consumers. Instead, this tax makes distributors pay a tax (of 1.75 cents per ounce) on sugar-sweetened beverage products they distribute within the City of Seattle. Consumers may notice an increase in the prices of sugary drinks.
Why does Seattle have a sugar tax?
Seattle’s sweetened beverage tax was designed to result in the improved health of Seattle residents by reducing the sales and consumption of sugary drinks. It raises revenue for programs that increase access to healthy food and supports children’s health and learning.
When did the Seattle sugar tax start?
2018
In a recent analysis, researchers used a large set of grocery shopping data to track food and drink sales before and after the city of Seattle implemented a sugary drinks tax in January of 2018.
Do soda taxes create healthier communities?
Additionally, soda taxes are more likely to yield greater health benefits among people in lower-income groups, who tend to be at greater risk of the health impacts of soda consumption and more responsive to increases in soda prices.
What cities in the US currently have a sugar 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.
What is the purpose of an extra tax on soda pop?
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 sweetened beverages. Drinks covered under a soda tax often include carbonated soft drinks, sports drinks and energy drinks.
How many states have a soda tax?
After a few years without much attention, taxes on sugar-sweetened beverages (SSBs) are back in the headlines, with at least four states—Connecticut, Hawaii, New York, and Washington—considering such statewide taxes.
Is there tax on soda in Washington state?
Washington law exempts most grocery type food from retail sales tax. However, the law does not exempt “prepared food,” “soft drinks,” or “dietary supplements.” Businesses that sell these “foods” must collect sales tax.
How much is soda tax in Washington?
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. In other words, a 12-ounce can of soda would cost an additional 21 cents.
Does the sugar tax work?
The study showed that the volume of soft drinks bought remained the same but the amount of sugar in those drinks fell by 29.5g.
Who pays the sugar tax?
Manufacturers are responsible for paying the levy on drinks with more than 5g sugar per 100ml (there are two tiers: a lower tier where the tax is 18 pence per litre on drinks with 5g sugar per 100ml and above; and a higher tier where drinks with 8g sugar per 100ml or more pay 24 pence per litre).
Which country has sugar tax?
Tiers
| Countries | When introduced | Tax design |
|---|---|---|
| Mexico | 2014 | Volumetric |
| Morocco | 2019 | Sugar content |
| Nauru | 2007 | Ad valorem |
| New Caledonia | 2017 |
Do soda taxes reduce obesity?
An increase of one percentage point in the state soft drink tax rate leads to a decrease in body mass index (BMI) of 0.003 points. The influence of soft drink taxes varies across demographic groups; we find that soft drink taxes have a larger influence on BMI and obesity for low income adults and Hispanics.
Is soda tax a good way to curb obesity?
A new analysis led by a researcher from Harvard T.H. Chan School of Public Health suggests taxing sweetened beverages by the amount of sugar they contain rather than by liquid volume, as some cities currently do.
Will sugar tax reduce obesity?
In the study, researchers conclude that a 20 percent price increase on high-sugar snacks could lead to a 2 percent decrease in obesity in a year. Among the taxed snacks they studied were candies (including chocolate, the researchers note), biscuits (aka cookies), and cakes.
Where is the soda tax money going?
Tax revenue increased funding for nutritional supports for low-income, disabled, and senior residents. Other programs, ranging from Family Violence Services to Healthy Corner Store Retail to day laborer mental health support in the Mission, have been funded in smaller amounts.
Does China have a sugar tax?
Sugar Taxes Are Looming
With health on the mind, public health experts suggested that China intensified its nutrition legislation, restricted the advertisement of sugary drinks, and imposed taxes on them in 2018.
Does California have a soda tax?
Four California cities — Albany, Berkeley, Oakland and San Francisco — had soda taxes in place before the 2018 legislative deal that were allowed to remain. Boulder, Colorado; Philadelphia; Seattle; and the Navajo Nation also have soda taxes, with proposals under consideration in Rhode Island and Washington, D.C.
Does Chicago have a soda tax?
The Chicago Home Rule Municipal Soft Drink Occupation Tax is imposed on persons who sell canned or bottled soft drinks at retail in Chicago. The rate is 3 percent of gross receipts from soft drinks sold at retail.
Is the soda tax good?
Research reveals new evidence that sugary beverage tax impacts are sustainable, effective. Two new studies published by researchers at the University of Illinois Chicago provide evidence that public policies to reduce consumption of added sugars through taxes on sugar-sweetened beverages are effective and sustainable.