Sweetened Beverage Tax
Since January 2018, the City of Seattle has imposed a sweetened beverage tax. View Ordinance 125324.
The sweetened beverage tax is a tax on the distribution of sweetened beverages in the city of Seattle. The tax is collected on the final distribution of sweetened beverages by a distributor. The intent of the sweetened beverage tax is to tax the distributions of sweetened beverages into Seattle for retail sale in Seattle.
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. For information about the Community Advisory Board that advises the Mayor and City Council about revenue from the sweetened beverage tax and the programs and services it supports, see the information about tax investments.
For more information, please review:
- Sweetened beverage tax frequently asked questions.
- Sweetened beverage tax illustrative examples (for distributors, restaurants and grocery stores).
- Seattle business tax rule 5-953.
- Seattle Municipal Code Chapter 5.53.
If you have questions or concerns, contact SweetenedBevTax@seattle.gov.
Tax rate
The standard tax rate for the sweetened beverage tax is $.0175 per ounce. There is a reduced tax rate for certified manufacturers. That rate is $.01 per ounce.
Filing the sweetened beverage tax
Distributors are liable for the sweetened beverage tax on distributions of sweetened beverages into Seattle for retail sale in Seattle. Distributors may file the sweetened beverage tax in two ways:
- Online at https://www.filelocal-wa.gov/.
- Mail a completed sweetened beverage tax form with a check to the City.
Distributors will file either annually or quarterly, following the same schedule as their business license tax filing due dates.
Exemption from the sweetened beverage tax
If a distributor sells products from a certified small manufacturer (annual worldwide gross revenue of $2 million or less), those sales are exempt from taxation. The manufacturer must apply for the exemption with the City.
Reduced tax rate
If a distributor sells products from a certified manufacturer that has worldwide gross revenue of over $2 million but less than $5 million, those sales are eligible for a reduced tax rate ($.01/ounce). The manufacturer must apply for the reduced rate certification with the City.
Additional exemptions
For a listing of sweetened beverages that are exempt from the sweetened beverage tax, please see Seattle Rule 5-953.
Redistribution certificate
The intent of the redistribution certificate is to ensure that the tax only applies to distribution of sweetened beverages for retail sale in Seattle. Retail businesses that receive distributions of sweetened beverages in the city of Seattle but then redistribute some or all of the sweetened beverages for retail sale outside the city may issue redistribution certificates to distributors. The retailer then becomes responsible for remitting the tax to the City only on those sweetened beverages receipted and sold at retail in Seattle.
In accordance with Seattle Rule 5-953 Sweetened Beverage Tax, this certificate may be completed by a person who requests to the distributor that they be liable for the sweetened beverage tax on sweetened beverages ultimately distributed for retail sale in Seattle.
Any distributor that accepts a redistribution certificate must provide a copy of the completed certificate to the City of Seattle within 15 days of receipt and the distributor will receive a confirmation of receipt from the City. The redistribution certificate is only valid with a confirmation receipt from the City of Seattle.
Distributors that accept a redistribution certificate must remit a copy by fax to (206) 684-5170 or by email to sweetenedbevtax@seattle.gov.
Read the code
You can read the Seattle Municipal Code (SMC) for legal details about the sweetened beverage tax.
SMC Chapter 5.53 covers the sweetened beverage tax.
Seattle business tax rule 5-953 provides further information.