MYNORTHWEST NEWS

Study: Seattle sugary beverage tax led to 30.5% drop in sales

Feb 19, 2020, 3:34 PM | Updated: 3:48 pm

sugary drink tax, soda tax...

(AP)

(AP)

A new study on the passing of Seattle’s sugary beverage tax revealed perhaps unsurprising results: Sales of the beverages significantly dropped as a result of the tax, 30.5 percent in the months after it came into effect.

Seattle’s tax of 1.75 cents per fluid ounce of sugary beverages took effect in January 2018, and is charged to distributors of sugar-sweetened beverages. The soda tax was expected to bring in about $15 million in its first year. Instead, it produced more than $21 million in 2018 – about $7 million more than expected.

Study: 97 percent of Seattle soda tax passed on to consumers

The study was conducted by University of Illinois at Chicago researchers, who compared sales periods sales from February through September 2018 to the same time period in 2016 and 2017, and used Nielsen retail-scanner data from numerous types of stores where such drinks are available, reports The Seattle Times. As to whether the taxes are pushing consumers elsewhere to purchase sugary drinks, the study also found that sales in border areas within two miles of Seattle only dropped slightly.

The city council voted in July to approve restrictions on Sweetened Beverage Tax revenues. The money was initially slated for programs aimed at improving access to healthy foods. But after taking in far more funds than expected — nearly $6 million — some of that excess money has been used for other purposes, such as social services.

Council votes to overturn Mayor Durkan’s veto of soda tax restrictions

Of the beverages being sold, family-sized beverage dropped more than sales of individual sizes (31 percent versus 10 percent), with soda seeing the biggest decrease of all sugary beverages at a 29 percent drop.

As a contrast, researchers looked at sales in Portland, where no such tax exists, and found that sales of sugary beverages dropped only 10.5 percent.

Please follow our Community Guidelines

MyNorthwest News

shootout...

Tom Brock

North Seattle shootout leaves dozens of shell casings, hair-raising close call for woman in her apartment

People living in a north Seattle neighborhood survived a shootout Saturday morning, but their homes and cars were damaged in a flurry of gunfire.

18 hours ago

Everett...

KIRO 7 News Staff

Everett proposes a $766 million budget with a potential new sales tax

Everett’s proposed budget for next year does not cut services or staff, but it could include a new sales tax to fund public safety.

22 hours ago

Bellevue’s Cantina Monarca sets sights on Seattle waterfront debut in 2027...

Regan Gallo-Fenz

Bellevue’s Cantina Monarca sets sights on Seattle waterfront debut in 2027

From gourmet tacos to lobster enchiladas, Bellevue's Cantina Monarca is coming to Seattle.

1 day ago

Seahawks...

Luke Duecy

Seahawks vs. Chiefs: How the 12s can reclaim the world record for loudest stadium

Seattle Seahawks fans have a record to reclaim, and science offers a few clues about how to do it.

1 day ago

e-scooter...

Brittany Perry, KIRO 7 News

5-year-old hospitalized with life-threatening injuries in crash involving car, e-scooter

Two children were injured in a crash involving an e-scooter and a car on Friday afternoon, and one of those children is fighting for their life.

2 days ago

winco foods grocery store seattle renton opening...

MyNorthwest Staff

WinCo Foods recalls popular bread item distributed in WA

WinCo Foods has recalled a popular bread item due to an undeclared allergen.

2 days ago

Study: Seattle sugary beverage tax led to 30.5% drop in sales