SWEETENED BEVERAGE TAX

SEA-MC tit. 5, subtit. II, ch. 5.53

in effect

Seattle Mun. Code § 5.53.010 Administrative provisions

5.53.010 - Administrative provisions The provisions contained in Chapter 5.55 shall have full force and application with respect to taxes imposed under the provisions of this Chapter 5.53 except as may be expressly stated to the contrary herein. (Ord. 125324, § 2, 2017.)

Seattle Mun. Code § 5.53.020 Definitions

5.53.020 - Definitions The definitions contained in Chapter 5.30 shall be fully applicable to this Chapter 5.53 except as may be expressly stated to the contrary herein. The following additional definitions shall apply throughout this Chapter 5.53: "Beverage for medical use" means a beverage suitable for human consumption and manufactured for uses as a: 1. Oral nutritional therapy for persons who cannot absorb or metabolize caloric or dietary nutrients from usual food or beverages; or 2. Oral rehydration electrolyte solution formulated to prevent or treat dehydration due to illness; or 3. Any beverage that meets the statutory definition of "medical food" under the Orphan Drug Act of 1983, 21 U.S.C. 360ee(b)(3), as amended. "Beverage for medical use" shall not include drinks commonly referred to as "sports drinks" or any other common names that are derivations thereof. "Bottled sweetened beverage" means any sweetened beverage contained in a bottle or any other closed container that is ready for consumption without further processing such as, without limitation, dilution, or carbonation. "Caloric sweetener" means any substance or combination of substances that contains calories, is suitable for human consumption, and that humans perceive as sweet. Caloric sweeteners include, but are not limited to, sugar, sucrose, dextrose, fructose, glucose, and other monosaccharides and disaccharides; corn syrup or high fructose corn syrup; honey; and any other such substance designated by the Director. "Concentrate" means a syrup, powder, frozen or gel mixture, or other product containing one or more sweeteners as an ingredient, intended to be used in making, mixing, or compounding a sweetened beverage by combining the concentrate with one or more other ingredients. "Consumer" means a natural person who purchases a sweetened beverage product in the City for a purpose other than resale in the ordinary course of business and for sale to another. "Distribute" and "distribution" mean the transfer of ownership of, title to, or possession of products, where the recipient of the transfer offers the products for retail sale and the transfer is (1) from one person to another for consideration or (2) within a single non-natural person, such as from a wholesale or warehousing unit of a business to a retail outlet of the same business or between two or more employees or contractors of the same business. "Distribute" and "distribution" shall not mean the retail sale to a consumer. A distribution takes place where delivery to the recipient occurs. "Distributor" means any person that distributes sweetened beverages in the City, regardless of whether the person also offers sweetened beverages for retail sale. "Milk" means natural fluid milk, regardless of animal sources or butterfat content; natural milk concentrate, whether or not reconstituted, regardless of animal source or butterfat content; or dehydrated natural milk, whether or not reconstituted and regardless of animal source or butterfat content; and plant-based milk substitutes that are marketed as milk, such as but not limited to, soy milk, coconut milk, rice milk, and almond milk. "Natural or common sweetener" means: granulated white sugar, brown sugar, honey, molasses, xylem sap of maple trees, or agave nectar. "Nonalcoholic beverage" means a beverage suitable for human consumption and that is not liquor as defined in RCW 66.04.010. "Sweetened beverage" means any beverage intended for human consumption which contains one or more caloric sweeteners, whether in bottles, prepared from concentrates, served as a fountain beverage, or in any other form. "Sweetened beverage" includes all drinks and beverages commonly referred to as soda, pop, cola, soft drinks, sports drinks, energy drinks, sweetened ice teas and coffees, and other products with added caloric sweeteners including but not limited to juice with added caloric sweetener, flavored water with added caloric sweetener, and non-alcoholic mix beverages that may or may not be mixed with alcohol or any other common names that are derivations thereof. "Sweetened beverage" does not include any of the following: 1. Any beverage in which natural milk is the primary ingredient, in other words, the ingredient listed first in the product ingredient list; or in which water and grains, nuts, legumes, or seeds constitute the first two ingredients in the product ingredient list; 2. Any beverage for medical use; 3. Any liquid sold for use as a meal replacement for weight reduction or other purposes; 4. Any product commonly referred to as infant formula or baby formula; 5. Any alcoholic beverage; 6. Any beverage consisting of 100 percent natural fruit or vegetable juice with no added sweetener. For the purposes of this definition of "sweetened beverage", natural fruit juice and natural vegetable juice mean the original liquid resulting from the pressing of fruits or vegetables; 7. Any concentrate that the consumer combines with other ingredients to create a beverage; 8. Any beverage that contains fewer than 40 calories per 12-ounce serving; or 9. Sweetened medication such as cough syrup, liquid pain relievers, fever reducers, and similar products. (Ord. 125324, § 2, 2017.)

Seattle Mun. Code § 5.53.030 Tax imposed; rates

5.53.030 - Tax imposed; rates A. There is imposed a privilege tax on every person engaging within the City in business as a distributor of sweetened beverages. 1. The amount of tax due shall be equal to the volume of sweetened beverages the distributor distributes in the City, multiplied by the applicable tax rate prescribed in subsection 5.53.030.B. 2. For sweetened beverages that are concentrates, the tax shall be calculated using the largest volume of beverage that would typically be produced by the amount of concentrate distributed based on the manufacturer's instructions or industry practice. Where a product is produced from more than one concentrate, the rate on each component shall be calculated proportionately, so that the combined tax on the total yields $0.0175 per fluid ounce of resulting beverage. B. 1. For sweetened beverages that the Director has certified to have been manufactured by a manufacturer with worldwide gross income of more than $2,000,000 but less than $5,000,000 in the prior calendar year, the tax rate shall be $0.01 per fluid ounce of sweetened beverage the distributor distributes. In order for a sweetened beverage to be eligible for the rate under this subsection 5.53.030.B.1, the manufacturer must apply to the City for certification according to rules established by the Director. 2. For all other sweetened beverages, the tax rate shall be $0.0175 per fluid ounce of sweetened beverages the distributor distributes. (Ord. 125324, § 2, 2017.)

Seattle Mun. Code § 5.53.040 Sweetened beverage tax—When due

5.53.040 - Sweetened beverage tax—When due The tax imposed by this Chapter 5.53 shall be due and payable in accordance with Section 5.55.040. Taxpayers filing their Chapter 5.45 business license tax on a quarterly basis shall file the sweetened beverage tax on a quarterly basis, and taxpayers filing their business license tax on an annual basis shall file the sweetened beverage tax on an annual basis, on forms prescribed by the Director. Persons discontinuing their business activities in Seattle shall report and pay the sweetened beverage tax at the same time as they file their final business license tax return. (Ord. 125324, § 2, 2017.)

Seattle Mun. Code § 5.53.050 Sweetened beverage tax—Exemptions

5.53.050 - Sweetened beverage tax—Exemptions A. A distributor may deduct from the amount of sweetened beverages used to calculate the tax owed under Section 5.53.030 all sweetened beverages that the Director has certified have been manufactured by a manufacturer with worldwide gross income of $2,000,000 per year or less. In order for a sweetened beverage to be eligible for the deduction under this subsection 5.53.050.A, the manufacturer must apply to the City for certification according to rules established by the Director. B. The direct retail sale of sweetened beverages by a manufacturer to a consumer without the involvement of a third party to transport or distribute the beverages shall not constitute "distribution" and the tax under Section 5.53.030 shall not apply to sweetened beverages transferred in this manner. C. If a person who is a member of a consolidated group, as defined by the Internal Revenue Code, pays the tax imposed by Section 5.53.030 on a distribution of sweetened beverages, then subsequent transfers of those sweetened beverages from that person to members of the consolidated group are not subject to the tax imposed by Section 5.53.030. D. Persons that are exempt from taxation by Washington cities pursuant to federal or state statutes or regulations are exempt from the tax imposed by this Chapter 5.53. (Ord. 125324, § 2, 2017.)

Seattle Mun. Code § 5.53.055 Sweetened beverage tax—Allocation of proceeds

5.53.055 - Sweetened beverage tax—Allocation of proceeds A. Services funded by the proceeds of the beverage tax are intended to expand access to healthy and affordable food; close the food security gap; promote healthy nutrition choices; reduce disparities in social, developmental, and education readiness and learning for children; assist high school graduates enter college; and expand services for the birth-to-five population and their families. B. Proceeds from the beverage tax shall be used to support, in order of priority: 1. Expanding access to healthy and affordable food, closing the food security gap, and promoting healthy food choices through programs including, but not limited to: a. Community-based investments to expand food access, such as food banks and meal programs; b. Fresh Bucks and Fresh Bucks to Go; c. Implementation of the Seattle Food Action Plan; d. Public health and nutrition programs targeted to assist persons experiencing diabetes and obesity; e. Public awareness campaigns to highlight the impact of sugar-sweetened beverages on health outcomes and increase education about healthy food and beverages; and f. Capital investments to promote healthy choices, such as water bottle filling stations in schools and community centers. 2. Expanding evidence-based programs that improve the social, emotional, educational, physical, and mental health of children, especially those prenatal-to-age-three and kindergarten readiness services that seek to reduce the disparities in outcomes for children and families based on race, gender, or other socioeconomic factors and to prepare children for a strong and fair start in kindergarten, such as home visiting programs and child care assistance. 3. Administration of assessing and collecting the tax. 4. Ensuring resources for the Office of Sustainability and the Environment and the Sweetened Beverage Tax Community Advisory Board. 5. The cost of program evaluations conducted by the Office of the City Auditor under subsection 5.B of Ordinance 125324, including costs borne by other City departments in facilitating such evaluations. In the annual City budget or by separate ordinance, the City's legislative authority shall from year to year determine the services and funding allocations that will most effectively achieve the goals and outcomes in accordance with chapter 35.32A RCW. C. Up to $2,000,000 may be reserved as a cash balance in the Sweetened Beverage Tax Fund, deposited as a financial reserve to offset future revenue shortfalls. This revenue shall be segregated in a separate reserve designated by the Finance Director or designee, and shall be used to maintain existing program expenditures, in accordance with subsection 5.53.055.B. (Ord. 127348, § 1, 2025; Ord. 125995, § 1, 2019; Ord. 125886, § 2, 2019 [material previously uncodified]; Ord. 125718, § 1, 2018; Ord. 125324, § 3, 2017.)

Seattle Mun. Code § 5.53.060 General excise tax in addition to other license fees and taxes

5.53.060 - General excise tax in addition to other license fees and taxes A. The tax imposed by Section 5.53.030 is a general excise tax on the privilege of conducting certain business within the City. It is not a sales tax or use tax or other excise tax on the sale, consumption, use, or gross receipts of sweetened beverages. B. The tax imposed by Section 5.53.030 shall be in addition to any license fee or tax imposed or levied under any other law, statute, or ordinance whether imposed or levied by the City, state, or other governmental entity or political subdivision. (Ord. 125324, § 2, 2017.)

Seattle Mun. Code § 5.53.070 Sweetened beverage tax—Constitutional limitation

5.53.070 - Sweetened beverage tax—Constitutional limitation Notwithstanding anything to the contrary in this Chapter 5.53, if imposition of the City's tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the City's tax, and still apply the City tax to as much of the taxpayer's activities as may be subject to the City's taxing authority. (Ord. 125324, § 2, 2017.)

Seattle Mun. Code § 5.53.080 Rules and regulations

5.53.080 - Rules and regulations The Director shall adopt, publish, and enforce rules and regulations not inconsistent with this Chapter 5.53 for the purpose of carrying out the provisions of this Chapter 5.53, including but not limited to rules to clarify the inclusion or exclusion of particular products, the calculation of tax for concentrates based on manufacturer's instructions or industry practice, rules to implement the exemption for the products of certain manufacturers under subsection 5.53.050.A, rules to implement the tax rates provided under subsection 5.53.030.B, and the designation of caloric sweeteners. (Ord. 125324, § 2, 2017.)

Source: City of Seattle, Seattle Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT5REFITA_SUBTITLE_IITA_CH5.53SWBETAFetched: 11/1/2026