Seattle dumps 'latte tax'

The 'latte tax' ran into fierce opposition

Voters in Seattle, the city that considers itself the world capital of coffee, have rejected a controversial proposed tax on their favourite brew.

Just over 68% of the electorate voted against "Initiative 77", which aimed to add 10 cents (6 pence) to the price of every latte, espresso and cappuccino in order to fund school programmes for children from low-income families.

The initiative had been bitterly opposed by many consumers, and especially by cafe-owners, who grumbled that it would add considerably to their paperwork.

Many economists, too, criticised the plan, since there was no logical reason why coffee drinkers should have been singled out to foot the bill for educational initiatives.

Up for grabs

There were also unresolved arguments over the likely success of any coffee tax.

Proponents of Initiative 77 said it would raise an annual $6.5m for the city, but the municipal government's estimate was less than half that figure. Opponents, meanwhile, said it would bring in $1.5m at best.

According to some estimates, Seattle - a city of fewer than 600,000 people - gets through 200,000 shots of espresso every day.

With premium coffees retailing at $5 or more, the market was seen as a lucrative one by those scraping around for increased municipal revenues.

Initiative 77 was one of a host of one-off proposed laws put up for public vote, a common practice in many parts of the US.

In Seattle, pressure groups in favour of a change to the law need to gather 30,000 signatures to have their idea put on the ballot.