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Carbonated beverage tax repealed effective December 2, 2010

The carbonated beverage tax (CBT) was repealed with the passage of Initiative 1107 on November 2, 2010. As of December 2, 2010, sellers of carbonated beverages are no longer subject to the tax.

No deduction exists for any inventory of carbonated beverages on which the tax was paid. Since the tax was imposed on the beverage seller, it was part of the price paid by the buyer.

From July 1, 2010, through December 1, 2010, sales of carbonated beverages were subject to the tax. Sellers must report CBT unless one of the following exemptions applied:

  • The bottlers’ exemption.
  • The exemption for previously taxed beverages.

What was the carbonated beverage tax?

The carbonated beverage tax was imposed on the sale of carbonated beverages at wholesale or retail in Washington.  The tax did not apply to successive sales of previously taxed carbonated beverages.

What was the rate?

The rate was $.02 per 12 ounces of carbonated beverages.

What is a carbonated beverage?

A carbonated beverage is a beverage intended for human consumption that contains carbonation by natural or artificial means and any of the following substances:

  • Caffeine
  • Extracts
  • Fruit juice or concentrated fruit juice
  • Herbs
  • Sweeteners
  • Syrup (a concentrated mixture in liquid or powdered form containing sugar or sugar substitute)

Carbonated beverages do not include carbonated bottled water.