Seattle tax increase not likely in Ames
September 21, 2003
While Seattle residents have recently settled a heated battle over the proposal of a 10 cent increase on the price of espresso drinks, ISU students said such a law would not affect their coffee purchasing habits.
In the coffee capital of the U.S., Seattle voters rejected a tax increase of an extra dime for any beverage containing a half ounce or more of espresso.
The tax increase was supposed to fund early childhood education programs, but was shot down last Tuesday after 68 percent of voters opposed the tax.
The 10-cent tax increase, called Initiative 77, would have raised an estimated $6.5 million each year according to the Economic Opportunity Institute, which gathered over 30,000 signatures to get the tax increase proposal on the ballot.
Jonathan Reed, owner of the Stomping Grounds Cafe, 303 Welch Ave., said if such a tax were to come to Ames, he did not believe his business would be affected.
However, he said he believes it would be a big pain to have to separate the sales individually between espresso drinks and brewed coffee drinks, which wouldn’t have a tax increase.
“I think the tax would be a manager’s nightmare,” Reed said.
John Klaus, Ames city attorney, said a situation like what occurred in Seattle could not occur in Ames.
“Iowa cities do not have the power to levy taxes,” Klaus said.
Some students said even if something like that did happen in Ames, it would not make much impact on their coffee habits.
“I would still come in and drink coffee, maybe just not as much,” said Kaylie Engelen, freshman in pre-professional health programs.
Engelen said she would have no problem paying 10 cents more, knowing it was going to a good cause.
Jess Clyde, senior in sociology, said he saw the Seattle coffee situation as being a random event.
“Paying 10 cents more on what is already a high-end drink wouldn’t affect my coffee drinking habits,” Clyde said.
Ames coffee shop employees said they did not see the connection between coffee prices and childhood education.
“I can’t imagine one segment of the population paying for something else that is completely unrelated,” said Lawrence VerSteeg, manager of Taraccino’s Coffee.
Reed agreed.
“It would make more sense to have a general tax raise for child care for coffee farmers,” he said.
According to the National Coffee Association, the espresso tax would have been the first of its kind in the nation.
—The Associated Press contributed to this story.