Zlati Meyer

USA TODAY

In another blow to the soft-drink industry, Seattle is going to become the latest city to tax sweetened-beverage — and even hometown icon Starbucks will be swept up in the new law.

The Seattle City Council has approved a plan to levy a 1.75 cent per ounce — that's 35 cents on a 20-ounce drink — on beverages like sugary energy or sports drinks and fizzy sodas. It is scheduled to take effect on Jan. 1.

The city now joins other municipalities that have approved what have been dubbed soda taxes, including Philadelphia; Berkeley, Calif.; Boulder, Colo.; and Cook County, Ill., which includes Chicago. It's a growing movement that has alarmed the soft-drink makers, which includes Coca-Cola and Pepsico.

Starbucks shoppers won't be taxed when they buy plain coffee, but it could come into play on drinks that come with sweetening. The coffee giant, which has long touted its Seattle roots, said the tax will likely lead to higher prices in Seattle.

"We know the impact will go beyond ready-to-drink beverages to hand-crafted beverages," company spokeswoman Sanja Gould explained. "A frappuccino would be affected. Iced tea would be affected. Iced coffee would be affected if it has a sweetener."

The coffee giant has urged customers to call or e-mail the city council. It said in a statement that it has "informed city officials that we are concerned about the harmful economic impact this measure will have on the hundreds of Seattle's coffee shops, beyond just Starbucks, and their customers."

The Seattle tax includes syrups used to make drinks, such as what's put into soda fountains, according to city spokesman Benton Strong. One exception is syrup used for in-store drinks that are milk-based. Diet soda, alcohol, infant formula, unsweetened 100% fruit or vegetable juices are also not included on the roster of taxable beverages.

Jennifer Cue, CEO of the Seattle-based publicly-traded craft soft-drink company Jones Soda isn't buying it.

"It's targeting and vilifying one industry to appear to look like you're trying to solve the obesity issue, but it's really a revenue grab. If it’s a sugar issue, it should be on all sugar products," she said. "I’m disappointed in the city of Seattle. That’s just following other cities and it's not innovative. Seattle is an innovative city that can do much better."

Follow USA TODAY reporter Zlati Meyer on Twitter: @ZlatiMeyer