Alcohol taxes

AN ACT Relating to increasing alcohol taxes; amending RCW 1
66.24.210, 66.24.290, and 82.02.030; providing an effective date; and 2
declaring an emergency. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 66.24.210 and 2023 c 470 s 1012 are each amended to 5
read as follows: 6
(1) There is hereby imposed upon all wines except cider sold to 7
wine distributors within the state a tax at the rate of twenty and 8
one-fourth cents per liter. Any domestic winery or certificate of 9
approval holder acting as a distributor of its own production must 10
pay taxes imposed by this section. There is hereby imposed on all 11
cider sold to wine distributors within the state a tax at the rate of 12
three and fifty-nine one-hundredths cents per liter. However, wine 13
sold or shipped in bulk from one winery to another winery is not 14
subject to such tax. 15
(a) The tax provided for in this section shall be collected by 16
direct payments based on wine purchased by wine distributors.17
(b) Except as provided in subsection (7) of this section, every 18
person purchasing wine under the provisions of this section must on 19
or before the twentieth day of each month report to the board all 20
purchases during the preceding calendar month in such manner and upon 21
H-2046.2
HOUSE BILL 2079
State of Washington 69th Legislature 2025 Regular Session
By Representatives Davis and Fitzgibbon
Read first time 04/16/25. Referred to Committee on Finance.
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such forms as may be prescribed by the board, and with such report 1
must pay the tax due from the purchases covered by such report unless 2
the same has previously been paid. Any such purchaser of wine whose 3
applicable tax payment is not postmarked by the twentieth day 4
following the month of purchase will be assessed a penalty at the 5
rate of two percent a month or fraction thereof. The board may 6
require that every such person shall execute to and file with the 7
board a bond to be approved by the board, in such amount as the board 8
may fix, securing the payment of the tax. If any such person fails to 9
pay the tax when due, the board may suspend or cancel the license 10
until all taxes are paid. 11
(c) Any licensed retailer authorized to purchase wine from a 12
certificate of approval holder with a direct shipment endorsement or 13
a domestic winery must make monthly reports to the liquor and 14
cannabis board on wine purchased during the preceding calendar month 15
in the manner and upon such forms as may be prescribed by the board.16
(2) An additional tax is imposed equal to the rate specified in 17
RCW 82.02.030 multiplied by the tax payable under subsection (1) of 18
this section. All revenues collected during any month from this 19
additional tax must be transferred to the state general fund by the 20
twenty-fifth day of the following month. 21
(3) An additional tax is imposed on wines subject to tax under 22
subsection (1) of this section, at the rate of one-fourth of one cent 23
per liter for wine sold after June 30, 1987. After June 30, 1996, 24
such additional tax does not apply to cider. An additional tax of 25
five one-hundredths of one cent per liter is imposed on cider sold 26
after June 30, 1996. All revenues collected under this subsection (3) 27
shall be disbursed quarterly to the Washington wine commission for 28
use in carrying out the purposes of chapter 15.88 RCW.29
(4) An additional tax is imposed on all wine subject to tax under 30
subsection (1) of this section. The additional tax is equal to 31
((twenty-three and forty-four one-hundredths cents )) $0.4688 per 32
liter on fortified wine as defined in RCW 66.04.010 when bottled or 33
packaged by the manufacturer, ((one cent )) $0.02 per liter on all 34
other wine except cider, and eighteen one-hundredths of one cent per 35
liter on cider. All revenues collected during any month from this 36
additional tax shall be deposited in the state general fund by the 37
twenty-fifth day of the following month. 38
(5)(a) An additional tax is imposed on all cider subject to tax 39
under subsection (1) of this section. The additional tax is equal to 40
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two and four one-hundredths cents per liter of cider sold after June 1
30, 1996, and before July 1, 1997, and is equal to four and seven 2
one-hundredths cents per liter of cider sold after June 30, 1997.3
(b) An additional tax is imposed on all cider subject to tax 4
under subsection (1) of this section. The additional tax is equal to 5
$0.0563 per liter of cider.6
(c) All revenues collected from the additional ((tax)) taxes 7
imposed under this subsection (5) must be deposited in the state 8
general fund. 9
(6) For the purposes of this section, "cider" means table wine 10
that contains not less than one-half of one percent of alcohol by 11
volume and not more than eight and one-half percent of alcohol by 12
volume and is made from the normal alcoholic fermentation of the 13
juice of sound, ripe apples or pears. "Cider" includes, but is not 14
limited to, flavored, sparkling, or carbonated cider and cider made 15
from condensed apple or pear must. 16
(7) For the purposes of this section, out-of-state wineries must 17
pay taxes under this section on wine sold and shipped directly to 18
Washington state residents in a manner consistent with the 19
requirements of a wine distributor under subsections (1) through (4) 20
of this section, except wineries shall be responsible for the tax and 21
not the resident purchaser. 22
(8) Notwithstanding any other provision of this section, any 23
domestic winery or wine certificate of approval holder acting as a 24
distributor of its own production that had total taxable sales of 25
wine in Washington state of six thousand gallons or less during the 26
calendar year preceding the date on which the tax would otherwise be 27
due is not required to pay taxes under this section more often than 28
annually. 29
Sec. 2. RCW 66.24.290 and 2010 1st sp.s. c 23 s 1301 are each 30
amended to read as follows: 31
(1) Any microbrewer or domestic brewery or beer distributor 32
licensed under this title may sell and deliver beer and strong beer 33
to holders of authorized licenses direct, but to no other person, 34
other than the board. Any certificate of approval holder authorized 35
to act as a distributor under RCW 66.24.270 shall pay the taxes 36
imposed by this section. 37
(a) Every such brewery or beer distributor shall report all sales 38
to the board monthly, pursuant to the regulations, and shall pay to 39
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the board as an added tax for the privilege of manufacturing and 1
selling the beer and strong beer within the state a tax of one dollar 2
and thirty cents per barrel of thirty-one gallons on sales to 3
licensees within the state and on sales to licensees within the state 4
of bottled and canned beer, including strong beer, shall pay a tax 5
computed in gallons at the rate of one dollar and thirty cents per 6
barrel of thirty-one gallons. 7
(b) Any brewery or beer distributor whose applicable tax payment 8
is not postmarked by the twentieth day following the month of sale 9
will be assessed a penalty at the rate of two percent per month or 10
fraction thereof. Beer and strong beer shall be sold by breweries and 11
distributors in sealed barrels or packages. 12
(c) The moneys collected under this subsection shall be 13
distributed as follows: (i) Three-tenths of a percent shall be 14
distributed to border areas under RCW 66.08.195; and (ii) of the 15
remaining moneys: (A) Twenty percent shall be distributed to counties 16
in the same manner as under RCW 66.08.200; and (B) eighty percent 17
shall be distributed to incorporated cities and towns in the same 18
manner as under RCW 66.08.210. 19
(d) Any licensed retailer authorized to purchase beer from a 20
certificate of approval holder with a direct shipment endorsement or 21
a brewery or microbrewery shall make monthly reports to the ((liquor 22
control)) state liquor and cannabis board on beer purchased during 23
the preceding calendar month in the manner and upon such forms as may 24
be prescribed by the board. 25
(2) An additional tax is imposed on all beer and strong beer 26
subject to tax under subsection (1) of this section. The additional 27
tax is equal to ((two dollars)) $4 per barrel of thirty-one gallons. 28
All revenues collected during any month from this additional tax 29
shall be deposited in the state general fund by the twenty-fifth day 30
of the following month. 31
(3)(a) An additional tax is imposed on all beer and strong beer 32
subject to tax under subsection (1) of this section. The additional 33
tax is equal to ninety-six cents per barrel of thirty-one gallons 34
through June 30, 1995, two dollars and thirty-nine cents per barrel 35
of thirty-one gallons for the period July 1, 1995, through June 30, 36
1997, and ((four dollars and seventy-eight cents )) $9.56 per barrel 37
of thirty-one gallons thereafter. 38
(b) The additional tax imposed under this subsection does not 39
apply to the sale of the first sixty thousand barrels of beer each 40
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year by breweries that are entitled to a reduced rate of tax under 26 1
U.S.C. Sec. 5051, as existing on July 1, 1993, or such subsequent 2
date as may be provided by the board by rule consistent with the 3
purposes of this exemption. 4
(c) All revenues collected from the additional tax imposed under 5
this subsection (3) shall be deposited in the state general fund.6
(4) An additional tax is imposed on all beer and strong beer that 7
is subject to tax under subsection (1) of this section that is in the 8
first sixty thousand barrels of beer and strong beer by breweries 9
that are entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051, 10
as existing on July 1, 1993, or such subsequent date as may be 11
provided by the board by rule consistent with the purposes of the 12
exemption under subsection (3)(b) of this section. The additional tax 13
is equal to one dollar and forty-eight and two-tenths cents per 14
barrel of thirty-one gallons. By the twenty-fifth day of the 15
following month, three percent of the revenues collected from this 16
additional tax shall be distributed to border areas under RCW 17
66.08.195 and the remaining moneys shall be transferred to the state 18
general fund. 19
(5)(((a) From June 1, 2010, through June 30, 2013, an additional 20
tax is imposed on all beer and strong beer subject to tax under 21
subsection (1) of this section. The additional tax is equal to 22
fifteen dollars and fifty cents per barrel of thirty-one gallons.23
(b) The additional tax imposed under this subsection does not 24
apply to the sale of the first sixty thousand barrels of beer each 25
year by breweries that are entitled to a reduced rate of tax under 26 26
U.S.C. Sec. 5051 of the federal internal revenue code, as existing on 27
July 1, 1993, or such subsequent date as may be provided by the board 28
by rule consistent with the purposes of this exemption.29
(c) All revenues collected from the additional tax imposed under 30
this subsection shall be deposited in the state general fund.31
(6))) An additional tax is imposed on all beer and strong beer 32
subject to tax under subsection (1) of this section. The additional 33
tax is equal to $1.2961 per barrel of 31 gallons. The moneys 34
collected under this subsection must be distributed as follows:35
(a) 20 percent must be distributed to counties in the same manner 36
as under RCW 66.08.200; and37
(b) 80 percent shall be distributed to incorporated cities and 38
towns in the same manner as under RCW 66.08.210.39
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(6) An additional tax is imposed on all beer and strong beer that 1
is subject to tax under subsection (1) of this section that is in the 2
first 60,000 barrels of beer and strong beer by breweries that are 3
entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051, as 4
existing on July 1, 1993, or such subsequent date as may be provided 5
by the board by rule consistent with the purposes of the exemption 6
under subsection (3)(b) of this section. The additional tax is equal 7
to $1.4375 per barrel of 31 gallons. By the 25th day of the following 8
month, the revenues collected from this additional tax must be 9
transferred to the state general fund.10
(7) The board may make refunds for all taxes paid on beer and 11
strong beer exported from the state for use outside the state.12
(((7))) (8) The board may require filing with the board of a bond 13
to be approved by it, in such amount as the board may fix, securing 14
the payment of the tax. If any licensee fails to pay the tax when 15
due, the board may forthwith suspend or cancel his or her license 16
until all taxes are paid. 17
Sec. 3. RCW 82.02.030 and 1993 sp.s. c 25 s 107 are each amended 18
to read as follows: 19
(1) The rate of the additional taxes under RCW 54.28.020(2), 20
54.28.025(2), ((66.24.210(2),)) 82.16.020(2), 82.27.020(5), and 21
82.29A.030(2) shall be seven percent. 22
(2) The rate of the additional taxes under RCW 66.24.210(2) shall 23
be 14 percent.24
NEW SECTION. Sec. 4. This act is necessary for the immediate 25
preservation of the public peace, health, or safety, or support of 26
the state government and its existing public institutions, and takes 27
effect July 1, 2025.28
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