District of Columbia Increases Tax Rate on Soft Drinks

Effective October 1, 2019, the District of Columbia is increasing the sales and use tax rate on sales of soft drinks to 8% (previously 6%). Additionally, the definition of soft drinks is amended to exclude the following:

  • Any drinks that are 100% fruit or vegetable juice
  • Any drinks that are at least 50% milk, including soy, rice, or similar milk substitutes

Note that sales of soft drinks sold for immediate consumption will remain subject to a 10% sales tax. (Act 23-0092 (D.C.B. 23-209), Laws 2019; District of Columbia Tax Changes Take Effect October 1, D.C. Office of Tax and Revenue website, August 26, 2019)

Posted on September 30, 2019