Higher Soda Tax For D.C. Residents Pushed By Councilmembers

WASHINGTON, DC — A D.C. councilmember introduced legislation Monday that would replace the city’s existing 8-percent sales tax on sugary drinks with an excise tax of 1.5 cents per ounce on their distribution.

Councilmember Brianne K. Nadeau (Ward 1), who introduced the legislation, said the legislation seeks to address chronic diseases associated with the consumption of sugary drinks such as diabetes and heart disease.

Nadeau was joined by Councilmembers Mary Cheh, Anita Bonds, Charles Allen, Elissa Silverman and Chairman Phil Mendelson in introducing the legislation, called the Nutrition Equity Amendment Act of 2021.

With six members sponsoring the bill, only one more member would need to vote yes for the bill to pass.

A sales tax is applied to the customer at the register while an excise tax is paid by the distributor or retailer and is reflected in a higher price for the customer when they buy a soda. The legislation would increase the price of a 12-pack of Coke, for example, by more than $2, WTOP reported.

Supporters contend the excise tax will discourage residents from buying sugary drinks and make healthier options.

“In drafting this bill, I brought together members of the communities impacted by health disparities, health experts and advocates to identify areas where public health interventions and investments can make a difference in the health and lives of our communities,” Nadeau said in a statement.

A similar bill failed to pass the council in 2019. Opponents said the tax would encourage shoppers to leave D.C. and shop in Maryland or Virginia. Critics of the tax also contend it is regressive and that the city should work on expanding healthy grocery store options east of the Anacostia River.

The National Bureau of Economic Research found that a similar soda tax in Philadelphia decreased the amount of sugary drinks bought in the city but increased shopping trips outside the city.

Nadeau's legislation would allocate revenue generated from the tax to programs that increase access to healthy food options, expand community-based nutritional programming, and target chronic disease prevention and management. The proposed allocations include funding for:

• “Healthy Food as Medicine” programs for food-insecure populations, through the Department of Health Care Finance.
• Programs at DC Health aimed at reducing and preventing nutrition related chronic diseases such as diabetes, hypertension and heart disease.
• Funding to the Families First DC program to deliver nutrition education, cooking lessons and healthy shopping lessons at Family Success Centers, which are all located in Wards 7 and 8.
• Funding to the Office of the State Superintendent of Education to expand experiential food literacy education for students in grades pre-K-5.