In November 2016, San Francisco voters passed the Sugary Drinks Distributor Tax (SDDT) – more commonly known as the SF Soda Tax, which established a 1 cent per ounce fee on the initial distribution of drinks with added sugar. The videos below explain how tax revenue flows into the city and to the communities most targeted by the sugary drinks industry.<a data-id="78588" data-linktype="page" data-parent-id="2" href="/department-san-francisco-soda-tax/">Go back to soda tax home page</a><a href="https://media.api.sf.gov/documents/SDDT_HowItWorks_200526.pdf">Download the "How it works" infographic</a>

The graphic shows the process of San Francisco’s Soda Tax. On the left, a blue bottle cap icon reads “SF Soda Tax for Health.” The steps flow from left to right with arrows: sugary drinks (soda and sports drinks) → tax revenue is collected (coins and bills) → soda tax committee recommend investments→ City budget process finalizes investments (a hand holding a paper with a pie chart) → SF soda tax funds programs for healthy outcomes (a person brushing their teeth and holding a cup of water).

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How it works

[Music]How the SF Soda Tax Works<ol><li data-block-key="6gn7n">Sugary Drink Distributors are Taxed</li></ol>The SF Soda Tax is not a sales tax. Distributors are responsible for paying the tax. Merchants may choose to pass the cost of the tax along to consumers.<ol><li data-block-key="e6rh4">Revenue is Collected</li></ol>The SF Soda Tax collects about $15-16 million each year. The revenue goes into the City’s General Fund. About 22% is set aside for specific, voter- approved projects. The Tax Advisory Committee makes recommendations to the mayor on how to spend the remaining revenue.<ol><li data-block-key="eibjj">Tax Committee Recommends Investments</li></ol>The Committee talks to community members to learn about how the tax revenue could benefit people,especially low- income people and people of color who are most targeted by the beverage industry’s advertising. The Committee then submits their funding recommendations to the Mayor.4.City Budget Process Finalizes InvestmentsThe Mayor submits a budget proposal to the Board of Supervisors, including recommendations for the SF Soda Tax funds. The Board of Supervisors votes on the budget and the Mayor signs it.<ol><li data-block-key="bb79h">SF Soda Tax Funds Programs!</li></ol>SF Soda Tax funds go to City departments who either implement programs and services directly or issue grants to community-based organizations to fund their important work.Learn Morewww.sodatax-sf.orgSan Francisco Department of Public Health

Former SDDTAC Co-chair Jonathan Butler discusses social determinants of health and disparities. Filmed in May 2020.

Meet former Soda Tax Advisory Committee Member: Dr. Jonathan Butler

[Music]Hi, Jonathan. How are you?Hey, Shel. It's good to see you.Thanks for taking time um to talk about the San Francisco soda tax today.Absolutely. Absolutely.Well, let's just go ahead and jump in.Why is the San Francisco soda taximportant?Well, it's important for a number of reasons. First, it provides community-based organizations, faith-based organizations, and also students at the local school district the opportunity to take control of their health. We want to ensure that community members increase their water consumption, that they increase their fruit and vegetable consumption, increase breastfeeding for pregnant women, and also increase their physical activity. We address social determinants of the health including uh reducing barriers to housing, healthy food and beverages and education and safe neighborhoods and even environments.Jonathan, can you share more about what the term social determinant of health means?So, for example, a person living in a neighborhood that doesn't have a grocery store within miles from them, it's hard for them to actually obtain healthy produce or food because they simply can't get to it or it takes them a while to get to the nearest grocery store. So, a lot of times just where we live has a great impact on how healthywe become simply because of access.Why is the SF soda tax especially relevant right now?Well, there is uh many stats that or statistics rather that suggests that there's an increase in a lot of the chronic diseases such as hypertension, diabetes, uh heart disease, uh dental cavities, uh in communities that are underserved. It really boils down to folks having a quality a high quality of life. Not only do we provide resources to ensure that these communities um increase their advantaged behavioral outcomes, but we also provide these communities with the opportunities for economic and community development, which I think is so essential at these times.How, if at all, do you feel that the soda tax is working to promote health equity in in in the context of racial equity in the city of San Francisco?Uh, I think that the soda tax committee has made it a priority um to ensure that particularly African-American communities uh have a little bit of resources allocated to their communities. As we know, the beverage industry spends millions of dollars advertising and targeting African-American communities.I mean, the predatory marketing that happens in a lot of the grocery stores, especially small corner stores in underserved communities, especially when it's targeted at the youth, is um really devastating because they're catching really young consumers and the industry realizes if they catch them young, then they can have a lifelong customer.We also know that African-Americans lead in its rates of chronic diseases. We have the highest concentration of sugary beverage consumption and I think the soda tax uh committee has made it our priority to ensure that not only African-American community- based organizations but also faith-based organizations which are very important institution within the African-American community are funded through the soda tax funds.In thinking about the soda tax advisory committee's response to COVID 19. Is there anything that you would like to share about how the funding was pivoted?So, I'm very happy to uh recognize that the soda tax committee uh allocated $1.65 million for food insecurity in San Francisco. We know that 50% of low-income residents in San Francisco are food insecure. We also know that 20 to 30% of women with children are insecure. And so we made it our priority to ensure that those families, those who are in need have the food that they deserve or the food that they need, rather.What is your definition of being healthy and why is why is being healthy important?Being healthy is holistic to me. So it comprises of having a healthy mind, a healthy body, a healthy soul because I'm spiritual, um but also healthy emotions. And so I tend to ensure that you know in order to obtain a healthy mind I like to read. I like to write. I like to spend time with my family. I like to just simply go outside and walk. Uh to attain a healthy body. I of course exercise. I eat properly. And most importantly for me is I get a proper amount of sleep to reduce the stress from the day-to-day um business that I take care of. and also emotionally uh healthy is very important and I spend time a lot in meditation to help to sort of center me in terms of my emotional health.What types of impacts do you hope to see um in the future as a result of the soda tax? We as a soda tax committee when we value the increase in hiring particularly in those populations that are underserved, the increase of food security, the increase in economic opportunities, ensuring that we eliminate particularly chronic disease to ensure that they uh have that quality of life that we all as a soda tax committee um we aspire for our communities. If people are wanting to follow the Soda Tax on social media, what are the handles, the hashtags? How can people stay in touch with all of the great work that the Soda Tax is um going toward contributing to?There are many ways people can stay connected to the work that we do. Um our hashtag is #SFsodataxforhealth. You can log on to sodatax-sf.org.That's great. That's great. I hope that people are keeping in touch and following the great work of um the San Francisco Soda Tax. Jonathan, it's really great to talk to you.Good to see you, Shelly. It's my pleasure. Thank you so much.

Former SDDTAC member Lauren Heumann discusses where soda tax funds are being invested and how it is having an impact in SF Unified School Distract. Filmed in June 2020.

Meet former Soda Tax Advisory Committee Member: Lauren Heumann

[Music] Hold on. Sorry. Okay. Hi, Lauren. It's so good to see you. How are you? Hi, Shel. I'm good. How are you? I'm doing well. I'm doing well. Oh, it's so good to see you. It's been so long.Thank you for taking the time to sit down and talk today about the SF Soda Tax and your role in the committee.You're so welcome. Thank you for taking the time, too. It's fun to have a conversation with you.Well, let's go ahead and jump in. Why is the SF soda tax so important and how does it encourage healthier choices?The SF soda tax uh encourages healthy choices. I think on one side the idea is to discourage people from consuming sugary sweetened beverages, but I think more importantly the funds that are generated from it are going uh are going back to different programs that are to help uh encourage healthier habits. It's providing other alternatives uh and better access to better and better calories that discourage the consumption of sugary sweetened beverages or the need to rely on sugary sweetened beverages.Lauren, what is the one thing that you want San Franciscans to know about the SF Soda Tax?I want San Franciscans to know and to trust that the money is actually going back directly into the community. Um, it's going into the hands of um low-income adults to buy fresh fruits and vegetables. It's going into the hands of people who are feeding the community. It is going into the hands of people who are running after school programs who are getting kids outside. this money is getting getting directly back into the hands of those folks that need it the most.What is the SF soda tax and also what is your chair on the committee? The soda tax committee is a group of local public health, city and community experts that have come together to help make recommendations to the mayor and to the board of supervisors on the way best way to spend the revenue generated from the SF soda tax. And for my role, I fill one of two seats uh allocated for SFUSD. And the idea is that we are here to represent 56,000 students that represent the community.I love how you mentioned that the SF soda tax committee um really makes it a point to highlight the voices of San Franciscans. One thing that really stood out to me about the soda tax is that the funding wasn't just going to the program and design element of community- based organizations, but for example, the healthy retail program was funded and that was specifically for community engagement around healthy retail. So the hiring of people from the communities that are most impacted by um sugar sweetened beverages and pre predatory marketing. So, um, that's one thing that I really like about the SF Soda Tax is that the money not only goes to the community, but it also supports community- based organizations in hiring people who, um, are experts in their own lived experiences. What are some of the programs when you think about the types of um, community- based organizations and programming that has been funded through the SF Soda Tax? What are some of the programs that stand out the most to you?The funding for this for the student nutrition meal program stands out to me in such a big way. Historically as a school food is very underfunded and so to be able to have funds to not only do the bare minimum of just providing meals but to go and be above and beyond and actually to provide quality quality meals and and and also to engage with the community that they're serving is is incredible to see that that um happening. And and what we're seeing is more kids are participating. We're seeing school food become more of a resource in the community.Speaking of how the soda tax works to be able to to provide healthier options for people in underserved communities, how do you feel that the soda tax goes to promote racial equity um in San Francisco?The committee is really focused on ensuring that the funds that are generated are really going back to um communities that are underrepresented, communities that are disproportionately impacted, communities that have higher rates of a lot of the diseases that are um identified as related to uh the consumption of sugar and sugary sweetened beverages and ensuring that they have access to resources um that they need to be able to uh live healthier lives.Thinking in terms of our current um situations right now experiencing the CO 19 pandemic, why do you think that the SF soda tax is relevant right now during this time?you know, the the dramatic economic inequality and health disparities um are only growing and we've seen this over the last couple years. And I think even now as with the pandemic and more people are losing jobs, I'm worried that that um those disparities are only getting more pronounced in the city. And um and so to have a an entire committee and to have a surprisingly large pot of money uh to be able to continue to elevate those voices, right? And not only to provide money to the communities that need it most, but to work on or to help bring their voices to the table and to empower them to provide jobs, to provide uh capacity building uh at a time when that disparity is growing even greater. um can really help um build the resiliency of the community.What does it mean to be healthy to you and why is that important?For me, being healthy is balance. Um it's it's about balance. It's about eating healthy, getting enough sleep, staying active, especially right now working from home. I've been really making a point to get outside every single day. I love to ride my bike for fun and for exercise. I also love to ride my bike for commuting. Uh, I call it stealing fitness, but I get to, you know, by commuting by bike, I it's a slower pace. It kind of gets me ready for my day.Also, when I think of you, I definitely think of your bike, too. I've never seen you without your bike or without your helmet in hand. What type of impact are you hoping to see as a result of the SF soda tax?One thing I really hope is that this is going to continue to strengthen that like weaving within the city that really makes the city what it is and and helps to strengthen that and build that up. And I also just want to see a city that learns to help each other and works together to create a to create uh the environment that we all want to live in.Well, thanks for chatting, Lauren. This was great. It was so awesome to get to just talk to you and hear more about your role with the committee and um just your thoughts on the SF Soda Tax. So, thank you. Absolutely. It was great to see you and great to have this conversation. Uh and if you're interested in learning more, you can visit us at uh sodatax-f.org org and check out the hashtag SF soda tax. [Music]

Former SDDTAC member Vanessa Bohm discusses how soda tax funds are invested in communities with the highest need and highlights the Children's Oral Health Task Forces. Filmed in June 2020.

Meet former Soda Tax Advisory Committee Member: Vanessa Bohm

[Music] Oops. Sorry, I dropped the microphone. Hi, Shelly. So nice to see you. Hi, Vanessa. It's great to see you, too. Long time, but I'm sure we'll reconnect in person soon. Hopefully. Hopefully. Thanks for making time to chat today. This is really exciting. um looking forward to learning more about the San Francisco soda tax and more about your role on the committee. So, let's let's jump right in. Why is the soda tax so important?I think the soda tax is so important because it's a concrete practical way of creating positive health outcomes. The fact that it brings much needed resources to communities that have for so long faced such um challenges to creating health and wellness in their lives, in their family's lives, in their community lives. It has such a significant value in terms of bringing resources to communities that have historically um have very little resources.What is the San Francisco Soda Tax Committee and what is your chair on the committee, Vanessa?The soda tax committee was created through the soda tax legislation and the body is meant to create a set of recommendations for how soda tax funds should be spent. And the seat that I hold on the soda tax committee is one of the seats reserved for community- based organizations, nonprofits doing health equity work in populations that are disproportionately affected by chronic diseases that are influenced by the consumption of sugary drinks.And in thinking about all of the amazing community- based organizations that the soda tax funds, can you think of one that stands out to you and just share more about that organization?I think one of um the projects that stand out to me is one that CARECEN is a part of. It is the funding of three children's oral health task forces in San Francisco. There is one for the African-American community. There's one for the Chinese community and one targeting the Latino community. And the really wonderful thing about these task forces is that they're bringing together a diverse group of community stakeholders to tackle this issue of um early childhood cavities. They're doing really wonderful work messaging the importance of drinking tap water, reducing the consumption of sugary drinks, um, and a variety of other messages that are really important in improving oral health and of course improving um, overall health.Can you share more about how the soda tax works to advance health equity specifically for um ethnic communities within San Francisco that are disproportionately impacted by soda and sugary drink consumption?Well, I think one of the main ways that it impacts is that it um disincentivizes purchasing sugary drinks through the tax. But more importantly, the tax is a really important revenue uh for community- based organizations, community- based initiatives that are trying to trying to address um health disparities in those communities most impacted by the consumption of sugary drinks. And I think we need to still and we need to still be engaged in this conversation and see how the soda tax committee can really be informed by the the movement of this time.Wow, Vanessa, that's amazing. Um, amazing. Really powerful statement. I couldn't say better. I think it's just great too how the soda tax really engages engages and is welcoming to hear from the communities that are impacted by um sugar drink consumption um at even at the committee meetings. So just having that open space for public comment and having the community input subcommittee who's like really reaching out to those communities to hear directly from them as to what they need. I think it's just a really powerful committee. What changes do you hope to see as a result of the San Francisco soda tax?What what I really want to see is that this so soda tax um and the revenue behind the soda tax is really used to highlight why these health disparities exist and how we have to direct resources so that we can ensure that those who are suffering from chronic disease really get the resources that health the access to health care that communities really get the resources they need to lead very healthy and active lives.What does it mean to be healthy and why is it important?I think being healthy is a lot more than eating healthy foods and being physically active. I think healthy being healthy really means having what you need to not live a life full of stress, uh fear, anxiety. also feeling deeply connected to um a community, to your family, taking a look at the whole p the whole person um and and what that means to someone.Well, thank you, Vanessa. It was really great to be able to speak with you. You have so much wisdom. Thank you for sharing. Um looking forward to connecting again soon in person.Thank you, Shelly. It was so nice to talk with you.Great to talk with you, too.Byebye.

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The Advisory Committee makes recommendations on budget allocations of the Sugary Drinks Distributor Tax and evaluates its impact.

Sugary Drinks Distributor Tax Advisory Committee (SDDTAC)

SF's penny-per-ounce tax on sugary drinks is helping San Franciscans live their best lives by making it easier to drink more water, eat fresh fruits and vegetables, get exercise, improve oral health, and drink less soda.

How it works

How it works

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