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CNN Sunday Morning

Debate Over Espresso Tax

Aired September 14, 2003 - 09:22   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


HEIDI COLLINS, CNN ANCHOR: In Seattle, as you probably know, coffee is king. But now voters will have to decide if some coffee drinkers will have to pony up extra change, or if the so-called espresso tax will be ground into oblivion. We get the story now from Kimberly Osias.
(BEGIN VIDEOTAPE)

KIMBERLY OSIAS, CNN CORRESPONDENT (voice-over): They toss simulated coffee instead of tea, but this isn't 1773 in Boston. It's 2003 in Seattle, where a contentious debate over taxing specialty coffees is brewing.

JEAN MACALUSO, COFFEE DRINKER: I don't have any problem paying extra.

OSIAS (on camera): If Initiative 77 passes, drip coffee would be exempt, but espresso drinks like mocchas, capuccinos and lattes would be taxed an extra dime.

(voice-over): The city says the tax will raise at least $1.8 million a year for early education. Proponents estimate up to seven million.

ANGELA HICKS-MAXIE, EDUCATOR, TINY TOTS EARLY LEARNING CENTER: People want to do something to support early learning. People get it.

OSIAS: But not everybody does.

PETE CHURCH, COFFEE DRINKER: The tax is going to be enough of a burden on the small mom-and-pop organization.

OSIAS: Coffee shop owners like Kate Gill says profit margins are already thin. Although many cups get poured, espresso is the primary drink putting extra pennies in her cup.

KATE GILL, COFFEE SHOP OWNER: We're all fighting and we're all trying to stay alive.

OSIAS: And for businesses that are not already automated, tracking drinks could be an accounting nightmare. The city recommends keeping a manual count.

GILL: You are bound to make mistakes. And I'm bound to have to pay for that. And that could put me under.

OSIAS: What happens next will depend on what voters serve up. In Seattle, Kimberly Osias, reporting.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired September 14, 2003 - 09:22   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: In Seattle, as you probably know, coffee is king. But now voters will have to decide if some coffee drinkers will have to pony up extra change, or if the so-called espresso tax will be ground into oblivion. We get the story now from Kimberly Osias.
(BEGIN VIDEOTAPE)

KIMBERLY OSIAS, CNN CORRESPONDENT (voice-over): They toss simulated coffee instead of tea, but this isn't 1773 in Boston. It's 2003 in Seattle, where a contentious debate over taxing specialty coffees is brewing.

JEAN MACALUSO, COFFEE DRINKER: I don't have any problem paying extra.

OSIAS (on camera): If Initiative 77 passes, drip coffee would be exempt, but espresso drinks like mocchas, capuccinos and lattes would be taxed an extra dime.

(voice-over): The city says the tax will raise at least $1.8 million a year for early education. Proponents estimate up to seven million.

ANGELA HICKS-MAXIE, EDUCATOR, TINY TOTS EARLY LEARNING CENTER: People want to do something to support early learning. People get it.

OSIAS: But not everybody does.

PETE CHURCH, COFFEE DRINKER: The tax is going to be enough of a burden on the small mom-and-pop organization.

OSIAS: Coffee shop owners like Kate Gill says profit margins are already thin. Although many cups get poured, espresso is the primary drink putting extra pennies in her cup.

KATE GILL, COFFEE SHOP OWNER: We're all fighting and we're all trying to stay alive.

OSIAS: And for businesses that are not already automated, tracking drinks could be an accounting nightmare. The city recommends keeping a manual count.

GILL: You are bound to make mistakes. And I'm bound to have to pay for that. And that could put me under.

OSIAS: What happens next will depend on what voters serve up. In Seattle, Kimberly Osias, reporting.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com