Seattle talks tax over a latte

By Melanthia Mitchell

Associated Press

SEATTLE – It’s a tax that could hit Seattleites where it really hurts: their coffee mugs.

A group of child-care advocates, seeking more money for early education, filed an initiative Friday that would place a 10-cent city tax on Seattle’s lifeblood – espresso drinks.

But in Seattle, where voters have already voted to tax their tobacco, their meals and their hotel rooms, initial word of the proposal caused barely a jolt among the area’s latte lovers.

“Coffee, in a way, it’s kind of a luxury item,” said Patty Grazini, who frequents the Diva Espresso Bar in Seattle’s Greenwood district. “As long as the money went to the programs it was supposed to, I would support it.”

The Early Learning and Care Committee, which is made up of parents, teachers and child-care directors, expects the tax would raise $7 million to $10 million a year in this coffee-addicted city.

The money would be used to increase wages for child-care teachers, assist low- and middle-income families in obtaining quality child care and increase the amount of high-quality care in Seattle, said Lisa Moy, campaign manager.

The committee has until early August to collect the necessary 17,228 valid signatures needed to get the initiative on November’s ballot.

But Diva Espresso barista Melissa Petersen wasn’t so sure the initiative was such a good idea.

Another 10 cents is a lot to ask for a drink that’s already pretty expensive and can cost $3 to $4, she said.

“They’ve got a smoking tax, regular taxes, why not a yuppie tax,” Petersen said sarcastically.

Grazini, 50, averages about two cappuccinos a day and has no problem flipping the bistro an extra dime or two. The tax would bring the cost of her daily caffeine dosage to about $4.20, or an additional $73 a year. A person who has one drink each workday would pay an extra $26 a year.

Moy said taxing espresso drinks is a guaranteed source of income in Seattle, where many residents can’t get through the day without a caffeine hit.

Drip coffee would not be taxed and espresso seemed the most obvious choice that would not burden any particular economic group, Moy said.

“We know that the city of Seattle voters are dedicated to their children,” Moy said. “This is one way they can enable children more access to quality pre-kindergarten care.”

Since the tax would apply to businesses that gross more than $50,000 annually, Moy said Starbucks and Tully’s Coffee – Seattle’s main coffee contenders – were told of the group’s plan.

In a prepared statement, Starbucks said the company did not understand why the group “would recommend an additional consumer tax on espresso beverages, or any other single consumer product, to fund this initiative.”

Company spokeswoman Audrey Lincoff would not comment further.

The increase would do little to affect business at Diva Espresso’s four locations in Seattle, said manager Stephen Johnson.

“Regular customers would initially notice, but they would adapt to it very readily,” Johnson said. “I think coffee’s a pretty strong drug. People need their caffeine.”