In November the people of Washington will vote on Initiative 1634. Though framed as a ban on local grocery taxes, it is better understood as a restriction on discriminatory food taxes, such as a tax on soda distribution. Under current law, local governments are not able to place a sales tax on food items (with few exceptions).  As demonstrated by Seattle’s new soda tax, however, cities do have the authority to impose a “privilege tax” on the distribution of food products. Initiative 1634 would close this loophole at the local level but would not prohibit new discriminatory food taxes at the state level.

Initiative 1634 is not the first effort to ban local food taxes in the country. The state of California recently enacted a law prohibiting new local soda taxes until 2031. As reported by the LA Times: 

"California cities and counties won’t be allowed to tax soda for the next 12 years after Gov. Jerry Brown signed fast-moving legislation Thursday. The bill, which was first unveiled Saturday evening, prohibits local governments from imposing new taxes on soda until 2031. It comes after a deal was struck between legislators and business and labor interests who agreed to remove an initiative from the Nov. 6 statewide ballot that would have restricted cities and counties from raising any taxes without a supermajority vote of local citizens."

Arizona earlier this year adopted a law to prohibit local governments from imposing discriminatory food taxes. The Arizona Republic noted: 

"On Friday, Gov. Doug Ducey signed House Bill 2484 to prohibit cities, towns and counties from imposing extra taxes on soda or sugary drinks, as some liberal-leaning cities in other states have done. Specifically, HB 2484 requires local governments in Arizona to tax all food items equally."

Last year Michigan also enacted a law preventing local governments from imposing food taxes. Michiganlive.com reported: 

"The Michigan Senate on Thursday gave final approval to a bill banning local governments from establishing taxes on soda, food or gum. House Bill 4999, sponsored by Rep. Rob Verheulen, R-Walker, creates a new law to preempt local governments from implementing local taxes on soda, food or chewing gum. A local government could neither impose an excise tax on the manufacture or sale of the products, nor impose a tax or fee on their manufacture, distribution or sale."   

Voters in Oregon are also considering a constitutional amendment this year to prohibit a “sales tax, gross receipts tax, commercial activity tax, value-added tax, excise tax, privilege tax, and any other similar tax on sale of groceries.”

As for Initiative 1634, we're taking a closer look at the proposal and will have published analysis soon.