Model Local Sugar-Sweetened Beverage Distribution Tax Ordinance

Sugar-sweetened beverages (SSBs) are associated with a range of negative health impacts, including type-2 diabetes, adult and childhood obesity, heart disease, liver disease, and metabolic disorder. Based on available scientific evidence, excise taxes on the distribution of SSBs are expected to lead to decreased consumption, which in turn, is anticipated to have a positive impact on the health and wellness of residents. 

Local governments have authority to impose excise taxes on the distribution of sugar-sweetened beverage products and to use these revenues to promote community health and wellness and sustain city and county services. Our Model Local Sugar-Sweetened Beverage Distribution Tax Ordinance provides comprehensive, adaptable ordinance and bill language to support city, county, and state efforts to assess a tax on the distribution of SSBs. This model policy is designed to establish a general excise tax on the distribution of SSB products, define covered and exempt products, set forth administration and enforcement mechanisms, and outline options for revenue use, oversight, evaluation, and accountability. 

This model policy includes detailed provisions related to tax rate and tax base, registration of distributors, recordkeeping and inspection, penalties, appeals, and severability. It also includes optional language to establish community oversight panels to advise on programs to reduce SSB consumption and address related health impacts, as well as guidance on creating dedicated funds to support health, education, and wellness programs designed to diminish the human and economic costs of diet‑related disease. 

To learn more about SSB taxes with examples from Berkeley and Santa Cruz in California, read our case studies.