Washington: House Democrats on Thursday introduced a proposal to impose a sugar tax that would add 3 cents per fluid ounce to certain beverages, resulting in a 72-cent charge on a 24-ounce coffee, The Center Square reported.
The proposed levy would be in addition to existing state and local taxes, including Seattle’s sugar tax, which charges distributors 1.75 cents per ounce on sweetened beverages. Revenue from the new tax is intended to support expanded food assistance programs, even as some studies suggest it could reduce sales.
Representatives Chipalo Street of Seattle and Alex Ramel of Bellingham acknowledged this possibility while filing House Bill 2734, pointing to Seattle and other cities with similar taxes as examples of public health measures. They said the excise tax is designed to address health concerns by lowering consumption while generating state revenue, though declining sales could also affect collections.
“Whatever happens in Seattle never stays in Seattle,” said Representative Travis Couture, a Republican from Allyn, adding that such proposals are often driven by the need for additional revenue.
Similar to Seattle’s policy, the tax would apply to distributors, who may raise prices to offset the cost. However, House Bill 2742 allows distributors already paying Seattle’s tax to claim a credit against the state levy, effectively capping the rate at 3 cents per ounce.
The proposal comes as state spending has risen significantly since 2015, contributing to multi-billion-dollar deficits last year and another expected in 2026. Lawmakers previously approved a $12 billion tax increase to address the earlier shortfall. The Center Square reported it was unable to immediately reach either bill sponsor for comment before publication.
House Bill 2742 states that the sugar tax is needed because the state lacks a dedicated funding source for food assistance programs, which are currently supported through the general fund and federal dollars. Street and Ramel also cited federal policy changes that could put these programs at risk.
Couture expressed concern that revenue from the tax could eventually be redirected to the general fund to address future deficits rather than support food assistance.
The One Big Beautiful Bill Act, passed by Congress last July, includes a projected $186 billion reduction in the Supplemental Nutrition Assistance Program (SNAP) over the next decade, largely tied to eligibility changes focusing on lawful residents and nutrition goals.
Under HB 2734, Washington state would be barred from removing sugar-sweetened beverages from the list of items eligible for purchase through food assistance programs. The bill broadly defines such beverages as drinks containing one or more caloric sweeteners.
The proposal would exempt milk, medically necessary beverages, cough syrup, infant formula, weight-loss liquids, natural juices and concentrates, alcohol, and low-calorie drinks from the tax.
A 2023 study by the University of Washington examining Seattle’s sugar tax found that businesses largely passed the cost on to customers, with no lasting effect on snack or food prices, small business closures, or revenue.
If approved, HB 2742 would take effect in 2028.
