Duty-free sales enterprises

AN ACT Relating to concession fees by duty-free sales 1
enterprises; amending RCW 14.08.330; adding a new chapter to Title 19 2
RCW; creating a new section; and providing an effective date.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. (1) The legislature finds that federal law 5
in 19 U.S.C. Sec. 1555 recognizes the authority of states and 6
governmental authorities, incident to their jurisdiction over any 7
airport, seaport, or other exit point facility, to require a 8
concession or other form of approval to be obtained with respect to 9
the operation of a duty-free sales enterprise under which merchandise 10
is delivered to or through such facility for exportation.11
(2) The legislature finds that congress in enacting the omnibus 12
trade and competitiveness act of 1988, H.R. 4848, specifically 13
recognized that concession fees derived from the operations of 14
authorized duty-free sales enterprises constitute an important source 15
of revenue for the state and other governmental authorities that 16
collect such fees. 17
(3) The legislature finds that duty-free sales enterprises 18
operate in Washington including at airports and locations within 19
Washington near international borders, and engage in sales of 20
alcohol, cigarettes, other tobacco products, vapor products, nicotine 21
H-2000.1
HOUSE BILL 2061
State of Washington 69th Legislature 2025 Regular Session
By Representatives Fitzgibbon, Gregerson, Kloba, and Ramel
Read first time 03/26/25. Referred to Committee on Appropriations.
p. 1 HB 2061
products, and various kinds of merchandise. The legislature finds 1
that Washington has jurisdiction over these facilities, locations, 2
and duty-free sales enterprises operating in Washington, and that 3
Washington does not currently require concession fees of duty-free 4
sales enterprises to the extent authorized by federal law for 5
collecting this important source of revenue. 6
(4) Therefore, the legislature intends to impose concession fees 7
on duty-free sales enterprises operating within Washington as 8
provided in this act. 9
NEW SECTION. Sec. 2. The definitions in this section apply 10
throughout this chapter unless the context clearly requires 11
otherwise.12
(1) "Concession fee" means payment of a monetary fee by a duty-13
free sales enterprise to Washington state in relation to the sale of 14
merchandise from a duty-free sales enterprise operating in 15
Washington. 16
(2) "Department" means the department of revenue.17
(3) "Duty-free sales enterprise" has the same meaning as in 19 18
U.S.C. Sec. 1555 (b)(8), as it exists on the effective date of this 19
section, or such subsequent date as may be provided by the department 20
by rule, consistent with the purposes of this title.21
(4) "Gross proceeds of sales" has the same meaning as in RCW 22
82.04.070. 23
(5) "Merchandise" means all items, goods, and products sold by a 24
duty-free sales enterprise including but not limited to beer, wine, 25
spirits, liquor, cigarettes, other tobacco products, vapor products, 26
nicotine products, nonalcoholic beverages, food, clothing, jewelry, 27
fragrances, cosmetics, accessories, electronics, books, magazines, 28
souvenirs, and all other items, goods, and products whatsoever.29
(6) "Sales" has the same meaning as in RCW 82.04.040.30
NEW SECTION. Sec. 3. (1) Upon every duty-free sales enterprise 31
operating in Washington, there is levied and collected a concession 32
fee in an amount equal to the gross proceeds of sales of merchandise 33
by the duty-free sales enterprise, multiplied by the rate of 0.10.34
(2) The concession fee in this section is separate and in 35
addition to business and occupation taxes and all other taxes and 36
fees applicable to duty-free sales enterprises operating in 37
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Washington including a concession fee paid to a port authority or 1
other governmental authority. 2
(3) The department shall implement this chapter and may establish 3
procedures and requirements for the payment of concession fees by 4
duty-free sales enterprises and the collection of such concession 5
fees. 6
NEW SECTION. Sec. 4. The department may adopt rules to 7
implement this chapter.8
Sec. 5. RCW 14.08.330 and 1985 c 246 s 1 are each amended to 9
read as follows: 10
Every airport and other air navigation facility controlled and 11
operated by any municipality, or jointly controlled and operated 12
pursuant to the provisions of this chapter, shall, subject to federal 13
and state laws, rules, and regulations, including sections 2 through 14
4 of this act, be under the exclusive jurisdiction and control of the 15
municipality or municipalities controlling and operating it. The 16
municipality or municipalities shall have concurrent jurisdiction 17
over the adjacent territory described in RCW 14.08.120(((2))) (1)(b). 18
No other municipality in which the airport or air navigation facility 19
is located shall have any police jurisdiction of the same or any 20
authority to charge or exact any license fees or occupation taxes for 21
the operations. However, by agreement with the municipality operating 22
and controlling the airport or air navigation facility, a 23
municipality in which an airport or air navigation facility is 24
located may be responsible for the administration and enforcement of 25
the uniform fire code, as adopted by that municipality under RCW 26
19.27.040, on that portion of any airport or air navigation facility 27
located within its jurisdictional boundaries. 28
NEW SECTION. Sec. 6. This act takes effect January 1, 2026.29
NEW SECTION. Sec. 7. If any provision of this act or its 30
application to any person or circumstance is held invalid, the 31
remainder of the act or the application of the provision to other 32
persons or circumstances is not affected.33
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NEW SECTION. Sec. 8. Sections 2 through 4 of this act 1
constitute a new chapter in Title 19 RCW.2
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p. 4 HB 2061