The Washington, D.C. city council announced yesterday that the recently approved Healthy Schools Act will be funded by a new six percent tax on all soft drinks sold in Washington, D.C., instead of using money from a previously proposed soda excise tax.
This tax is different from the previously proposed penny-per-ounce excise tax, which would have increased the shelf-price of soft drinks.
Six Percent Sales Tax
Instead, consumers will see a six percent increase on the sales receipt after the beverages have been purchased.
This will provide more money for school food in D.C., put more local produce in school meals, and establish grants to expand school gardens and increase physical education.
The six percent sales tax will apply to artificially sweetened and sugar-sweetened beverages, but not beverages containing milk, coffee, juice or tea.
The tax is projected to raise $7.92 million annually. The total price tag for the "Healthy Schools" initiative is expected to run $6.5 million per year.
Read More: DC Rejects Soda Tax But Funds Better School Food ( grist.org)
Previously on Earth Eats: D.C. Council Votes For Local Food, More Exercise For School Kids