Seattle’s sweetened beverage tax

The city of Seattle imposes a sweetened beverage tax on certain beverage products distributed within the city.

How does this affect you as the distributor and retailer?

The sweetened beverage tax is a tax on the distributor, not the consumer. Sweetened beverages distributors need to report and pay the tax. A distributor is any person that sells sweetened beverages in the city to a retailer or customer. Distributors may choose to pass this cost on to their customer (retailer). This additional amount becomes part of the gross selling price and is subject to wholesaling business occupation (B&O) tax.

In addition, if the distributor passes the cost to the retailer, the retailer may also choose to pass the cost on to their customers. This additional amount becomes part of the gross selling price and is subject to retailing B&O tax and retail sales tax.

How does this affect you as the consumer?

If the retailer passes the cost of the tax on to you, you will pay sales tax on the increased amount whether it is separately itemized or not.

What is a sweetened beverage?

Sweetened beverages include any non-alcoholic beverage, syrup, or other concentrate used to make a beverage that lists any caloric sugar-based sweetener as ingredients. This includes but is not limited to:

• Sucrose.
• Glucose.
• High fructose corn syrup.

This does not include:

• Any beverage where natural milk is the primary ingredient (listed first).
• Any beverage for medical use (electrolyte drinks).
• Any meal replacement liquids.
• Alcoholic beverages.
• Infant/baby formula.
• 100% natural fruit or vegetable juice with no added sweetener.
• Any beverage that contains fewer than 40 calories per 12-ounce serving.

You can read more about how you can report this tax to the city of Seattle at the Seattle Sweetened Beverage Tax page.