Big Soft Drink Corporations Funding WA 'Grocery Tax' I-1634

SEATTLE, WA - Four of the biggest soft drink makers in the world are behind a ballot initiative that, if passed, would prevent local governments in Washington from taxing sugary drinks - as Seattle did in 2017.

Coca-Cola Co, PepsiCo, Dr. Pepper Snapple Group, and Red Bull have given a combined $1.87 million to I-1634. All those companies are based outside of Washington, and took in a combined $110 billion in revenue in 2017. No other individuals or corporations have given money to the initiative.

According to the I-1634 website, the initiative would "protect hard-working families and neighborhood businesses from grocery taxes."

In short, the initiative would prevent local government from taxing "raw or processed foods or beverages." In Washington, food and food ingredients are already exempt for taxation. But the state Department of Revenue in August 2017 deemed that certain beverages could be subject to taxation - items like energy drinks, soda, bottled water, sports drinks, and juice containing less than 50 percent fruit juice.

(Tim Eyman filed an initiative, I-1635, that would also ban taxation of groceries, but he is not actively pursuing it.)

Approved by Seattle City Council last summer, Seattle's soda tax adds 1.75 cents per ounce to the price of any drink with added sugar, with some exceptions. That means a typical 16 ounce bottle of non-diet soda costs about 28 cents more.

I-1634 would not repeal Seattle's soda tax. A provision in the measure allows any tax on sugary drinks that went int0 effect before Jan. 15, 2018 to remain in place.

Revenue generated by the Seattle soda tax will go to fund a variety of city programs from reducing the education achievement gap to promoting nutrition. Seattle officials estimate the tax will bring in about $15 million in 2018, and about 20 percent of that will go toward administering the tax.

The I-1634 campaign has until July 6 to collect the approximately 300,000 signatures needed to get the measure on the November ballot.

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