SSB Tax Overview

What is the Sugar Sweetened Beverage Product Tax (SSB Tax)? The SSB Tax, often nicknamed the “sugar tax” or “soda tax,” is NOT a sales tax charged directly to the consumer. Instead, this excise tax makes distributors of sugar-sweetened beverages pay a tax applied to the drinks they distribute within the City of Boulder. The drinks that are subject to the tax contain at least 5 grams of added caloric sweeteners (such as sugar and high-fructose corn syrup) per 12 fluid ounces. This definition includes products like soda, energy drinks and heavily pre-sweetened tea, as well as the syrups and powders used to produce them, such as the boxed syrup used to make fountain drinks. Certain drinks such as infant formula, milk products, alcoholic beverages, alcoholic mixers and 100 percent natural fruit and/or vegetable juice are exempt.

The distributor of sugar-sweetened beverage products is responsible to pay the tax imposed on each non-exempt distribution of a sugar-sweetened beverage product in the city. If there is a chain of distribution within the city involving more than one distributor, the tax is levied on the first distributor subject to the jurisdiction of the city. If the tax is not paid by the first distributor for any reason, it is levied on subsequent distributors, provided that the distribution of sugar-sweetened beverage products may not be taxed more than once in the chain of commerce within the city. The City’s interpretation of the definition of “distribution" includes retailers obtaining and bringing the beverages into the City themselves (“self-distributors”). The Boulder City Council is currently considering amendments to the ordinance that will further define and clarify “distribution” to include various self-distribution scenarios Distributors are free to pass the added cost of the SSB Tax on to retailers. Likewise, retailers may or may not pass the cost along to their consumers.

When does the tax take effect?

The tax takes effect on July 1, 2017. Taxes are due monthly. The first return is due Aug. 21, 2017 and on the 20th of every month after that. Those who fail to file their returns and remit tax payments will be subject to enforcement action.

What is the tax rate and how is it calculated?

The tax rate is two cents ($0.02) per fluid ounce for ready-to-consume, liquid sugar-sweetened beverage products. However, the tax on added “caloric sweeteners” in the form of syrups and powders is calculated on the maximum volume, in fluid ounces, of beverage that the syrup or powder can produce based on the manufacturer’s instructions. While the ordinance requires the tax to be paid on the first non-exempt distribution in the City, if it is not paid at that time, it is payable on the next (or any subsequent) distribution, provided that no taxable product may be taxed more than once. For Sugar-Sweetened Beverages; Number of ounces of Sugar-Sweetened Beverage X Tax Rate = Sugar-Sweetened Beverage Tax

For example; a 12-ounce can of Sugar-Sweetened Soda X .02 = 24 cents ($0.24) Sugar-Sweetened Tax an 8-ounce bottle of Sugar-Sweetened Beverage X .02 = 16 cents ($0.16) Sugar-SweetenedTax

For Syrups or Powders; The manufacturer’s suggested serving size for the volume of fluid ounces of sugar-sweetened beverages produced from syrup or powder upon the initial distribution of syrup or powder; or

If the labeling or packaging does not specify the recommended number of servings per container, the tax shall be calculated using the largest volume of fluid ounces of sugar-sweetened beverages that could be produced from syrup or powder upon the initial distribution of syrup or powder.



​ For Example - a 750ml bottle of flavored syrup has 20 grams of sugar per one ounce serving and there are 25 servings in the container. 25 servings X 12 ounces (one serving size) = 300 ounces of SSB 300 ounces X .02 (SSB tax rate) = $6.00 SSB Tax

​ - a 750ml bottle of flavored syrup has 20 grams of sugar per one ounce serving and there are 25 servings in the container.

Where will the revenue go?