Revenue Calculator for Sugary Drink Taxes
New, Advanced Online Tool Offers Revenue Estimates for Sugary Drink Taxes
Excise taxes on sugary drinks can generate considerable revenue for cities, counties and states. The Revenue Calculator for Sugary Drink Taxes estimates potential annual revenues from excise taxes on sugary drinks (i.e., beverages with added caloric sweeteners: sodas, fruit drinks, sports drinks, ready-to-drink tea and coffee, enhanced water, and energy drinks). Zero-calorie/reduced calorie beverages such as diet drinks are not currently included in our estimation. Note that powders (e.g., fruit drink powder mixes) are also not included in our estimation.
Important Caveats: This model calculator is intended to provide a rough estimate and starting point to project the revenue from a tax on sugary drinks, and to illustrate how various assumptions affect the projections. A jurisdiction actively considering a tax should develop a more rigorous local estimate based on its unique context. Given the magnitude of potential non-compliance and possible variation across jurisdictions, the revenue projections here should be considered optimistic (assuming 100% compliance) and adjusted downward by at least 10%.
A city or county's listing in the calculator does not necessarily imply that the jurisdiction currently has legal authority to levy a sugary drink tax. It is essential to consult with an expert in your state's tax law to ascertain the available options.
Click here for a legal and practical guide to designing sugary drink taxes.
For any questions, please contact Tatiana Andreyeva, Director of Economic Initiatives, at firstname.lastname@example.org.
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Click here for more information on help using this calculator, development of the calculator, data sources, important local adjustments, and references.
Note: The city calculator has been updated to expand the list of cities and to use the latest population data (9/5/2017).