Low-proof alcohol beverages

AN ACT Relating to low-proof alcoholic beverages; amending RCW 1
66.04.010, 66.24.630, 66.24.055, and 82.08.150; and adding a new 2
section to chapter 66.24 RCW. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 66.04.010 and 2023 c 279 s 2 are each amended to 5
read as follows: 6
In this title, unless the context otherwise requires:7
(1) "Alcohol" is that substance known as ethyl alcohol, hydrated 8
oxide of ethyl, or spirit of wine, which is commonly produced by the 9
fermentation or distillation of grain, starch, molasses, or sugar, or 10
other substances including all dilutions and mixtures of this 11
substance. The term "alcohol" does not include alcohol in the 12
possession of a manufacturer or distiller of alcohol fuel, as 13
described in RCW 66.12.130, which is intended to be denatured and 14
used as a fuel for use in motor vehicles, farm implements, and 15
machines or implements of husbandry. 16
(2) "Authorized representative" means a person who:17
(a) Is required to have a federal basic permit issued pursuant to 18
the federal alcohol administration act, 27 U.S.C. Sec. 204;19
(b) Has its business located in the United States outside of the 20
state of Washington; 21
S-0645.1
SENATE BILL 5511
State of Washington 69th Legislature 2025 Regular Session
By Senator King
p. 1 SB 5511
(c) Acquires ownership of beer or wine for transportation into 1
and resale in the state of Washington; and which beer or wine is 2
produced by a brewery or winery in the United States outside of the 3
state of Washington; and 4
(d) Is appointed by the brewery or winery referenced in (c) of 5
this subsection as its authorized representative for marketing and 6
selling its products within the United States in accordance with a 7
written agreement between the authorized representative and such 8
brewery or winery pursuant to this title. 9
(3) "Beer" means any malt beverage, flavored malt beverage, or 10
malt liquor as these terms are defined in this chapter.11
(4) "Beer distributor" means a person who buys beer from a 12
domestic brewery, microbrewery, beer certificate of approval holder, 13
or beer importers, or who acquires foreign produced beer from a 14
source outside of the United States, for the purpose of selling the 15
same pursuant to this title, or who represents such brewer or brewery 16
as agent. 17
(5) "Beer importer" means a person or business within Washington 18
who purchases beer from a beer certificate of approval holder or who 19
acquires foreign produced beer from a source outside of the United 20
States for the purpose of selling the same pursuant to this title.21
(6) "Board" means the liquor and cannabis board, constituted 22
under this title. 23
(7) "Brewer" or "brewery" means any person engaged in the 24
business of manufacturing beer and malt liquor. Brewer includes a 25
brand owner of malt beverages who holds a brewer's notice with the 26
federal bureau of alcohol, tobacco, and firearms at a location 27
outside the state and whose malt beverage is contract-produced by a 28
licensed in-state brewery, and who may exercise within the state, 29
under a domestic brewery license, only the privileges of storing, 30
selling to licensed beer distributors, and exporting beer from the 31
state. 32
(8) "Club" means an organization of persons, incorporated or 33
unincorporated, operated solely for fraternal, benevolent, 34
educational, athletic, or social purposes, and not for pecuniary 35
gain. 36
(9) "Confection" means a preparation of sugar, honey, or other 37
natural or artificial sweeteners in combination with chocolate, 38
fruits, nuts, dairy products, or flavorings, in the form of bars, 39
drops, or pieces. 40
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(10) "Consume" includes the putting of liquor to any use, whether 1
by drinking or otherwise. 2
(11) "Contract liquor store" means a business that sells liquor 3
on behalf of the board through a contract with a contract liquor 4
store manager. 5
(12) "Craft distillery" means a distillery that pays the reduced 6
licensing fee under RCW 66.24.140. 7
(13) "Delivery" means the transportation of alcohol to an 8
individual located within Washington state from a licensed location 9
holding an alcohol delivery endorsement as part of a delivery order. 10
"Delivery" does not include services provided by common carriers.11
(14) "Dentist" means a practitioner of dentistry duly and 12
regularly licensed and engaged in the practice of his or her 13
profession within the state pursuant to chapter 18.32 RCW.14
(15) "Distiller" means a person engaged in the business of 15
distilling spirits. 16
(16) "Domestic brewery" means a place where beer and malt liquor 17
are manufactured or produced by a brewer within the state.18
(17) "Domestic winery" means a place where wines are manufactured 19
or produced within the state of Washington. 20
(18) "Drug store" means a place whose principal business is, the 21
sale of drugs, medicines, and pharmaceutical preparations and 22
maintains a regular prescription department and employs a registered 23
pharmacist during all hours the drug store is open.24
(19) "Druggist" means any person who holds a valid certificate 25
and is a registered pharmacist and is duly and regularly engaged in 26
carrying on the business of pharmaceutical chemistry pursuant to 27
chapter 18.64 RCW. 28
(20) "Employee" means any person employed by the board.29
(21) "Flavored malt beverage" means: 30
(a) A malt beverage containing six percent or less alcohol by 31
volume to which flavoring or other added nonbeverage ingredients are 32
added that contain distilled spirits of not more than ((forty-nine)) 33
49 percent of the beverage's overall alcohol content; or34
(b) A malt beverage containing more than six percent alcohol by 35
volume to which flavoring or other added nonbeverage ingredients are 36
added that contain distilled spirits of not more than ((one and 37
one-half)) 1.5 percent of the beverage's overall alcohol content.38
(22) "Fund" means 'liquor revolving fund.' 39
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(23) "Hotel" means buildings, structures, and grounds, having 1
facilities for preparing, cooking, and serving food, that are kept, 2
used, maintained, advertised, or held out to the public to be a place 3
where food is served and sleeping accommodations are offered for pay 4
to transient guests, in which ((twenty)) 20 or more rooms are used 5
for the sleeping accommodation of such transient guests. The 6
buildings, structures, and grounds must be located on adjacent 7
property either owned or leased by the same person or persons.8
(24) "Importer" means a person who buys distilled spirits from a 9
distillery outside the state of Washington and imports such 10
spirituous liquor into the state for sale to the board or for export.11
(25) "Imprisonment" means confinement in the county jail.12
(26) "Liquor" includes the four varieties of liquor herein 13
defined (alcohol, spirits, wine, and beer), and all fermented, 14
spirituous, vinous, or malt liquor, or combinations thereof, and 15
mixed liquor, a part of which is fermented, spirituous, vinous or 16
malt liquor, or otherwise intoxicating; and every liquid or solid or 17
semisolid or other substance, patented or not, containing alcohol, 18
spirits, wine, or beer, and all drinks or drinkable liquids and all 19
preparations or mixtures capable of human consumption, and any 20
liquid, semisolid, solid, or other substance, which contains more 21
than one percent of alcohol by weight shall be conclusively deemed to 22
be intoxicating. Liquor does not include confections or food products 23
that contain one percent or less of alcohol by weight.24
(27) "Low-proof beverage" means any beverage that is 16 ounces or 25
less and that contains more than .5 percent alcohol by volume and 26
less than seven percent alcohol by volume, but does not include wine, 27
malt beverages, or malt liquor.28
(28) "Malt beverage" or "malt liquor" means any beverage such as 29
beer, ale, lager beer, stout, and porter obtained by the alcoholic 30
fermentation of an infusion or decoction of pure hops, or pure 31
extract of hops and pure barley malt or other wholesome grain or 32
cereal in pure water containing not more than eight percent of 33
alcohol by weight, and not less than ((one-half of one )) .5 percent 34
of alcohol by volume. For the purposes of this title, any such 35
beverage containing more than eight percent of alcohol by weight 36
shall be referred to as "strong beer." 37
(((28))) (29) "Manufacturer" means a person engaged in the 38
preparation of liquor for sale, in any form whatsoever.39
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(((29))) (30) "Nightclub" means an establishment that provides 1
entertainment and has as its primary source of revenue (a) the sale 2
of alcohol for consumption on the premises, (b) cover charges, or (c) 3
both. 4
(((30))) (31) "Package" means any container or receptacle used 5
for holding liquor. 6
(((31))) (32) "Passenger vessel" means any boat, ship, vessel, 7
barge, or other floating craft of any kind carrying passengers for 8
compensation. 9
(((32))) (33) "Permit" means a permit for the purchase of liquor 10
under this title. 11
(((33))) (34) "Person" means an individual, copartnership, 12
association, or corporation. 13
(((34))) (35) "Physician" means a medical practitioner duly and 14
regularly licensed and engaged in the practice of his or her 15
profession within the state pursuant to chapter 18.71 RCW.16
(((35))) (36) "Powdered alcohol" means any powder or crystalline 17
substance containing alcohol that is produced for direct use or 18
reconstitution. 19
(((36))) (37) "Prescription" means a memorandum signed by a 20
physician and given by him or her to a patient for the obtaining of 21
liquor pursuant to this title for medicinal purposes.22
(((37))) (38) "Public place" includes streets and alleys of 23
incorporated cities and towns; state or county or township highways 24
or roads; buildings and grounds used for school purposes; public 25
dance halls and grounds adjacent thereto; those parts of 26
establishments where beer may be sold under this title, soft drink 27
establishments, public buildings, public meeting halls, lobbies, 28
halls and dining rooms of hotels, restaurants, theaters, stores, 29
garages and filling stations which are open to and are generally used 30
by the public and to which the public is permitted to have 31
unrestricted access; railroad trains, stages, and other public 32
conveyances of all kinds and character, and the depots and waiting 33
rooms used in conjunction therewith which are open to unrestricted 34
use and access by the public; publicly owned bathing beaches, parks, 35
and/or playgrounds; and all other places of like or similar nature to 36
which the general public has unrestricted right of access, and which 37
are generally used by the public. 38
(((38))) (39) "Regulations" means regulations made by the board 39
under the powers conferred by this title. 40
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(((39))) (40) "Restaurant" means any establishment provided with 1
special space and accommodations where, in consideration of payment, 2
food, without lodgings, is habitually furnished to the public, not 3
including drug stores and soda fountains. 4
(((40))) (41) "Sale" and "sell" include exchange, barter, and 5
traffic; and also include the selling or supplying or distributing, 6
by any means whatsoever, of liquor, or of any liquid known or 7
described as beer or by any name whatever commonly used to describe 8
malt or brewed liquor or of wine, by any person to any person; and 9
also include a sale or selling within the state to a foreign 10
consignee or his or her agent in the state. "Sale" and "sell" shall 11
not include the giving, at no charge, of a reasonable amount of 12
liquor by a person not licensed by the board to a person not licensed 13
by the board, for personal use only. "Sale" and "sell" also does not 14
include a raffle authorized under RCW 9.46.0315: PROVIDED, That the 15
nonprofit organization conducting the raffle has obtained the 16
appropriate permit from the board. 17
(((41))) (42) "Service bar" means a fixed or portable table, 18
counter, cart, or similar workstation primarily used to prepare, mix, 19
serve, and sell alcohol that is picked up by employees or customers. 20
Customers may not be seated or allowed to consume food or alcohol at 21
a service bar. 22
(((42))) (43) "Soda fountain" means a place especially equipped 23
with apparatus for the purpose of dispensing soft drinks, whether 24
mixed or otherwise. 25
(((43))) (44) "Soju" means a traditional Korean distilled 26
alcoholic beverage, produced using authentic Korean recipes and 27
production methods, and derived from agricultural products, that 28
contains not more than ((twenty-four)) 24 percent of alcohol by 29
volume. 30
(((44))) (45) "Spirits" means any beverage which contains alcohol 31
obtained by distillation, except flavored malt beverages, but 32
including wines exceeding ((twenty-four)) 24 percent of alcohol by 33
volume. 34
(((45))) (46) "Store" means a state liquor store established 35
under this title. 36
(((46))) (47) "Tavern" means any establishment with special space 37
and accommodation for sale by the glass and for consumption on the 38
premises, of beer, as herein defined. 39
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(((47))) (48) "VIP airport lounge" means an establishment within 1
an international airport located beyond security checkpoints that 2
provides a special space to sit, relax, read, work, and enjoy 3
beverages where access is controlled by the VIP airport lounge 4
operator and is generally limited to the following classifications of 5
persons: 6
(a) Airline passengers of any age whose admission is based on a 7
first-class, executive, or business class ticket; 8
(b) Airline passengers of any age who are qualified members or 9
allowed guests of certain frequent flyer or other loyalty incentive 10
programs maintained by airlines that have agreements describing the 11
conditions for access to the VIP airport lounge; 12
(c) Airline passengers of any age who are qualified members or 13
allowed guests of certain enhanced amenities programs maintained by 14
companies that have agreements describing the conditions for access 15
to the VIP airport lounge; 16
(d) Airport and airline employees, government officials, foreign 17
dignitaries, and other attendees of functions held by the airport 18
authority or airlines related to the promotion of business objectives 19
such as increasing international air traffic and enhancing foreign 20
trade where access to the VIP airport lounge will be controlled by 21
the VIP airport lounge operator; and 22
(e) Airline passengers of any age or airline employees whose 23
admission is based on a pass issued or permission given by the 24
airline for access to the VIP airport lounge. 25
(((48))) (49) "VIP airport lounge operator" means an airline, 26
port district, or other entity operating a VIP airport lounge that: 27
Is accountable for compliance with the alcohol beverage control act 28
under this title; holds the license under chapter 66.24 RCW issued to 29
the VIP airport lounge; and provides a point of contact for 30
addressing any licensing and enforcement by the board.31
(((49))) (50)(a) "Wine" means any alcoholic beverage obtained by 32
fermentation of fruits (grapes, berries, apples, et cetera) or other 33
agricultural product containing sugar, to which any saccharine 34
substances may have been added before, during or after fermentation, 35
and containing not more than ((twenty-four)) 24 percent of alcohol by 36
volume, including sweet wines fortified with wine spirits, such as 37
port, sherry, muscatel, and angelica, not exceeding ((twenty-four)) 38
24 percent of alcohol by volume and not less than ((one-half of 39
one)) .5 percent of alcohol by volume. For purposes of this title, 40
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any beverage containing no more than ((fourteen)) 14 percent of 1
alcohol by volume when bottled or packaged by the manufacturer shall 2
be referred to as "table wine," and any beverage containing alcohol 3
in an amount more than ((fourteen)) 14 percent by volume when bottled 4
or packaged by the manufacturer shall be referred to as "fortified 5
wine." However, "fortified wine" shall not include: (i) Wines that 6
are both sealed or capped by cork closure and aged two years or more; 7
and (ii) wines that contain more than ((fourteen)) 14 percent alcohol 8
by volume solely as a result of the natural fermentation process and 9
that have not been produced with the addition of wine spirits, 10
brandy, or alcohol. 11
(b) This subsection shall not be interpreted to require that any 12
wine be labeled with the designation "table wine" or "fortified 13
wine." 14
(((50))) (51) "Wine distributor" means a person who buys wine 15
from a domestic winery, wine certificate of approval holder, or wine 16
importer, or who acquires foreign produced wine from a source outside 17
of the United States, for the purpose of selling the same not in 18
violation of this title, or who represents such vintner or winery as 19
agent. 20
(((51))) (52) "Wine importer" means a person or business within 21
Washington who purchases wine from a wine certificate of approval 22
holder or who acquires foreign produced wine from a source outside of 23
the United States for the purpose of selling the same pursuant to 24
this title. 25
(((52))) (53) "Winery" means a business conducted by any person 26
for the manufacture of wine for sale, other than a domestic winery.27
Sec. 2. RCW 66.24.630 and 2021 c 48 s 5 are each amended to read 28
as follows: 29
(1) There is a spirits retail license to: Sell spirits in 30
original containers to consumers for consumption off the licensed 31
premises and to permit holders; sell spirits in original containers 32
to retailers licensed to sell spirits for consumption on the 33
premises, for resale at their licensed premises according to the 34
terms of their licenses, although no single sale may exceed ((twenty-35
four)) 24 liters, unless the sale is by a licensee that was a 36
contract liquor store manager of a contract liquor store at the 37
location of its spirits retail licensed premises from which it makes 38
such sales; and export spirits. 39
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(2) For the purposes of this title, a spirits retail license is a 1
retail license, and a sale by a spirits retailer is a retail sale 2
only if not for resale. Nothing in this title authorizes sales by on-3
sale licensees to other retail licensees. The board must establish by 4
rule an obligation of on-sale spirits retailers to:5
(a) Maintain a schedule by stock-keeping unit of all their 6
purchases of spirits from spirits retail licensees, including 7
combination spirits, beer, and wine licensees holding a license 8
issued pursuant to RCW 66.24.035, indicating the identity of the 9
seller and the quantities purchased; and 10
(b) Provide, not more frequently than quarterly, a report for 11
each scheduled item containing the identity of the purchasing on-12
premises licensee and the quantities of that scheduled item purchased 13
since any preceding report to: 14
(i) A distributor authorized by the distiller to distribute a 15
scheduled item in the on-sale licensee's geographic area; or16
(ii) A distiller acting as distributor of the scheduled item in 17
the area. 18
(3)(a) Except as otherwise provided in (c) of this subsection, 19
the board may issue spirits retail licenses only for premises 20
comprising at least ((ten thousand )) 10,000 square feet of fully 21
enclosed retail space within a single structure, including storerooms 22
and other interior auxiliary areas but excluding covered or fenced 23
exterior areas, whether or not attached to the structure, and only to 24
applicants that the board determines will maintain systems for 25
inventory management, employee training, employee supervision, and 26
physical security of the product substantially as effective as those 27
of stores currently operated by the board with respect to preventing 28
sales to or pilferage by underage or inebriated persons.29
(b) License issuances and renewals are subject to RCW 66.24.010 30
and the regulations adopted thereunder, including without limitation 31
rights of cities, towns, county legislative authorities, the public, 32
churches, schools, and public institutions to object to or prevent 33
issuance of local liquor licenses. However, existing grocery premises 34
licensed to sell beer and/or wine are deemed to be premises "now 35
licensed" under RCW 66.24.010(9)(a) for the purpose of processing 36
applications for spirits retail licenses. 37
(c) The board may not deny a spirits retail license to an 38
otherwise qualified contract liquor store at its contract location or 39
to the holder of former state liquor store operating rights sold at 40
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auction under RCW 66.24.620 on the grounds of location, nature, or 1
size of the premises to be licensed. The board may not deny a spirits 2
retail license to applicants that are not contract liquor stores or 3
operating rights holders on the grounds of the size of the premises 4
to be licensed, if such applicant is otherwise qualified and the 5
board determines that: 6
(i) There is no spirits retail license holder in the trade area 7
that the applicant proposes to serve; 8
(ii) The applicant meets, or upon licensure will meet, the 9
operational requirements established by the board by rule; and10
(iii) The licensee has not committed more than one public safety 11
violation within the three years preceding application.12
(d) A retailer authorized to sell spirits for consumption on or 13
off the licensed premises may accept delivery of spirits at its 14
licensed premises, at another licensed premises as designated by the 15
retailer, or at one or more warehouse facilities registered with the 16
board, which facilities may also warehouse and distribute nonliquor 17
items, and from which the retailer may deliver to its own licensed 18
premises and, pursuant to sales permitted under subsection (1) of 19
this section: 20
(i) To other retailer premises licensed to sell spirits for 21
consumption on the licensed premises; 22
(ii) To other registered facilities; or 23
(iii) To lawful purchasers outside the state. The facilities may 24
be registered and utilized by associations, cooperatives, or 25
comparable groups of retailers, including at least one retailer 26
licensed to sell spirits. 27
(e) For purposes of negotiating volume discounts, a group of 28
individual retailers authorized to sell spirits for consumption off 29
the licensed premises may accept delivery of spirits at their 30
individual licensed premises or at any one of the individual 31
licensee's premises, or at a warehouse facility registered with the 32
board. 33
(4)(a) Except as otherwise provided in RCW 66.24.632, section 2, 34
chapter 48, Laws of 2021, or in (b) of this subsection, each spirits 35
retail licensee must pay to the board, for deposit into the liquor 36
revolving fund, a license issuance fee equivalent to ((seventeen)) 17 37
percent of all spirits sales revenues under the license, exclusive of 38
taxes collected by the licensee and of sales of items on which a 39
license fee payable under this section has otherwise been incurred. 40
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The board must establish rules setting forth the timing of such 1
payments and reporting of sales dollar volume by the licensee, with 2
payments required quarterly in arrears. The first payment is due 3
October 1, 2012. 4
(b) This subsection (4) does not apply to ((craft)): Craft 5
distilleries for sales of spirits of the craft distillery's own 6
production; or sales of low-proof beverages. 7
(5) In addition to the payment required under subsection (4) of 8
this section, each licensee must pay an annual license renewal fee of 9
((one hundred sixty-six dollars )) $166. The board must periodically 10
review and adjust the renewal fee as may be required to maintain it 11
as comparable to annual license renewal fees for licenses to sell 12
beer and wine not for consumption on the licensed premises. If 13
required by law at the time, any increase of the annual renewal fee 14
becomes effective only upon ratification by the legislature.15
(6) As a condition to receiving and renewing a spirits retail 16
license the licensee must provide training as prescribed by the board 17
by rule for individuals who sell spirits or who manage others who 18
sell spirits regarding compliance with laws and regulations regarding 19
sale of spirits, including without limitation the prohibitions 20
against sale of spirits to individuals who are underage or visibly 21
intoxicated. The training must be provided before the individual 22
first engages in the sale of spirits and must be renewed at least 23
every five years. The licensee must maintain records documenting the 24
nature and frequency of the training provided. An employee training 25
program is presumptively sufficient if it incorporates a "responsible 26
vendor program" adopted by the board. 27
(7) The maximum penalties prescribed by the board in WAC 28
314-29-020 through 314-29-040 relating to fines and suspensions are 29
doubled for violations relating to the sale of spirits by spirits 30
retail licensees. 31
(8)(a) The board must adopt regulations concerning the adoption 32
and administration of a compliance training program for spirits 33
retail licensees, to be known as a "responsible vendor program," to 34
reduce underage drinking, encourage licensees to adopt specific best 35
practices to prevent sales to minors, and provide licensees with an 36
incentive to give their employees ongoing training in responsible 37
alcohol sales and service. 38
(b) Licensees who join the responsible vendor program under this 39
section and maintain all of the program's requirements are not 40
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subject to the doubling of penalties provided in this section for a 1
single violation in any period of ((twelve)) 12 calendar months.2
(c) The responsible vendor program must be free, voluntary, and 3
self-monitoring. 4
(d) To participate in the responsible vendor program, licensees 5
must submit an application form to the board. If the application 6
establishes that the licensee meets the qualifications to join the 7
program, the board must send the licensee a membership certificate.8
(e) A licensee participating in the responsible vendor program 9
must at a minimum: 10
(i) Provide ongoing training to employees; 11
(ii) Accept only certain forms of identification for alcohol 12
sales; 13
(iii) Adopt policies on alcohol sales and checking 14
identification; 15
(iv) Post specific signs in the business; and 16
(v) Keep records verifying compliance with the program's 17
requirements. 18
(f)(i) A spirits retail licensee that also holds a grocery store 19
license under RCW 66.24.360 or a beer and/or wine specialty shop 20
license under RCW 66.24.371 may, upon board approval and pursuant to 21
board rules, transition to a combination spirits, beer, and wine 22
license pursuant to RCW 66.24.035. 23
(ii) An applicant that would qualify for a spirits retail license 24
under this section and that qualifies for a combination spirits, 25
beer, and wine license pursuant to RCW 66.24.035 may apply for a 26
license pursuant to RCW 66.24.035 instead of applying for a spirits 27
retail license under this section. 28
NEW SECTION. Sec. 3. A new section is added to chapter 66.24 29
RCW to read as follows: 30
(1) There is levied and collected a tax on the distribution and 31
sale of low-proof beverages equal to $2.50 per gallon.32
(2) A spirits distributor under the terms of its license shall 33
pay the tax imposed by this section on sales of low-proof beverages 34
to spirits retailers. 35
(3) A distillery or craft distillery that self-distributes low-36
proof beverages under the terms of its license shall pay the tax 37
imposed by this section on sales to retailers. 38
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(4) A distillery or craft distillery that sells low-proof 1
beverages directly to consumers under the terms of its license shall 2
pay the tax imposed by this section on those sales.3
Sec. 4. RCW 66.24.055 and 2013 2nd sp.s. c 12 s 1 are each 4
amended to read as follows: 5
(1) There is a license for spirits distributors to (a) sell 6
spirits purchased from manufacturers, distillers, or suppliers 7
including, without limitation, licensed Washington distilleries, 8
licensed spirits importers, other Washington spirits distributors, or 9
suppliers of foreign spirits located outside of the United States, to 10
spirits retailers including, without limitation, spirits retail 11
licensees, special occasion license holders, interstate common 12
carrier license holders, restaurant spirits retailer license holders, 13
spirits, beer, and wine private club license holders, hotel license 14
holders, sports entertainment facility license holders, and spirits, 15
beer, and wine nightclub license holders, and to other spirits 16
distributors; and (b) export the same from the state.17
(2) By January 1, 2012, the board must issue spirits distributor 18
licenses to all applicants who, upon December 8, 2011, have the right 19
to purchase spirits from a spirits manufacturer, spirits distiller, 20
or other spirits supplier for resale in the state, or are agents of 21
such supplier authorized to sell to licensees in the state, unless 22
the board determines that issuance of a license to such applicant is 23
not in the public interest. 24
(3)(a) As limited by (b) of this subsection ((and subject to (c) 25
of this subsection )), each spirits distributor licensee must pay to 26
the board, for deposit into the liquor revolving fund, a license 27
issuance fee calculated as follows: 28
(i) In each of the first ((twenty-seven)) 27 months of licensure, 29
((ten)) 10 percent of the total revenue from all the licensee's sales 30
of spirits made during the month for which the fee is due, 31
respectively; and 32
(ii) In the ((twenty-eighth)) 28th month of licensure and each 33
month thereafter, five percent of the total revenue from all the 34
licensee's sales of spirits made during the month for which the fee 35
is due, respectively. 36
(b) The fee required under this subsection (3) is calculated only 37
on sales of items which the licensee was the first spirits 38
distributor in the state to have received: 39
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(i) In the case of spirits manufactured in the state, from the 1
distiller; or 2
(ii) In the case of spirits manufactured outside the state, from 3
an authorized out-of-state supplier. 4
(c) ((By March 31, 2013, all persons holding spirits distributor 5
licenses on or before March 31, 2013, must have paid collectively one 6
hundred fifty million dollars or more in spirits distributor license 7
fees. If the collective payment through March 31, 2013, totals less 8
than one hundred fifty million dollars, the board must, according to 9
rules adopted by the board for the purpose, collect by May 31, 2013, 10
as additional spirits distributor license fees the difference between 11
one hundred fifty million dollars and the actual receipts, allocated 12
among persons holding spirits distributor licenses at any time on or 13
before March 31, 2013, ratably according to their spirits sales made 14
during calendar year 2012. Any amount by which such payments exceed 15
one hundred fifty million dollars by March 31, 2013, must be credited 16
to future license issuance fee obligations of spirits distributor 17
licensees according to rules adopted by the board.18
(d))) A retail licensee selling for resale must pay a distributor 19
license fee under the terms and conditions in this section on resales 20
of spirits the licensee has purchased on which no other distributor 21
license fee has been paid. The board must establish rules setting 22
forth the frequency and timing of such payments and reporting of 23
sales dollar volume by the licensee, with payments due quarterly in 24
arrears. 25
(((e))) (d) No spirits inventory may be subject to calculation of 26
more than a single spirits distributor license issuance fee.27
(e) The fees in this subsection (3) do not apply to the sale of 28
low-proof beverages.29
(4) In addition to the payment set forth in subsection (3) of 30
this section, each spirits distributor licensee renewing its annual 31
license must pay an annual license renewal fee of ((one thousand 32
three hundred twenty dollars)) $1,320 for each licensed location.33
(5) There is no minimum facility size or capacity for spirits 34
distributor licenses, and no limit on the number of such licenses 35
issued to qualified applicants. License applicants must provide 36
physical security of the product that is substantially as effective 37
as the physical security of the distribution facilities currently 38
operated by the board with respect to preventing pilferage. License 39
issuances and renewals are subject to RCW 66.24.010 and the 40
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regulations promulgated thereunder, including without limitation 1
rights of cities, towns, county legislative authorities, the public, 2
churches, schools, and public institutions to object to or prevent 3
issuance of local liquor licenses. However, existing distributor 4
premises licensed to sell beer and/or wine are deemed to be premises 5
"now licensed" under RCW 66.24.010(9)(a) for the purpose of 6
processing applications for spirits distributor licenses.7
Sec. 5. RCW 82.08.150 and 2021 c 48 s 6 are each amended to read 8
as follows: 9
(1) There is levied and collected a tax upon each retail sale of 10
spirits in the original package at the rate of ((fifteen)) 15 percent 11
of the selling price. 12
(2) There is levied and collected a tax upon each sale of spirits 13
in the original package at the rate of ((ten)) 10 percent of the 14
selling price on sales by a spirits distributor licensee or other 15
licensee acting as a spirits distributor pursuant to Title 66 RCW to 16
restaurant spirits retailers. 17
(3) There is levied and collected an additional tax upon each 18
sale of spirits in the original package by a spirits distributor 19
licensee or other licensee acting as a spirits distributor pursuant 20
to Title 66 RCW to a restaurant spirits retailer and upon each retail 21
sale of spirits in the original package by a licensee of the board at 22
the rate of ((one dollar and seventy-two cents)) $1.72 per liter.23
(4) An additional tax is imposed equal to ((fourteen)) 14 percent 24
multiplied by the taxes payable under subsections (1), (2), and (3) 25
of this section. 26
(5) An additional tax is imposed upon each sale of spirits in the 27
original package by a spirits distributor licensee or other licensee 28
acting as a spirits distributor pursuant to Title 66 RCW to a 29
restaurant spirits retailer and upon each retail sale of spirits in 30
the original package by a licensee of the board at the rate of seven 31
cents per liter. All revenues collected during any month from this 32
additional tax must be deposited in the state general fund by the 33
((twenty-fifth)) 25th day of the following month. 34
(6)(a) An additional tax is imposed upon retail sale of spirits 35
in the original package at the rate of ((three and four-tenths )) 3.4 36
percent of the selling price. 37
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(b) An additional tax is imposed upon retail sale of spirits in 1
the original package to a restaurant spirits retailer at the rate of 2
((two and three-tenths)) 2.3 percent of the selling price.3
(c) An additional tax is imposed upon each sale of spirits in the 4
original package by a spirits distributor licensee or other licensee 5
acting as a spirits distributor pursuant to Title 66 RCW to a 6
restaurant spirits retailer and upon each retail sale of spirits in 7
the original package by a licensee of the board at the rate of 8
((forty-one cents)) $0.41 per liter. 9
(d) All revenues collected during any month from additional taxes 10
under this subsection must be deposited in the state general fund by 11
the ((twenty-fifth)) 25th day of the following month.12
(7)(a) An additional tax is imposed upon each retail sale of 13
spirits in the original package at the rate of ((one dollar and 14
thirty-three cents)) $1.33 per liter. 15
(b) All revenues collected during any month from additional taxes 16
under this subsection must be deposited by the ((twenty-fifth)) 25th 17
day of the following month into the general fund. 18
(8) The tax imposed in RCW 82.08.020 does not apply to sales of 19
spirits in the original package. 20
(9) The taxes imposed in this section must be paid by the buyer 21
to the seller, and each seller must collect from the buyer the full 22
amount of the tax payable in respect to each taxable sale under this 23
section. The taxes required by this section to be collected by the 24
seller must be stated separately from the selling price, and for 25
purposes of determining the tax due from the buyer to the seller, it 26
is conclusively presumed that the selling price quoted in any price 27
list does not include the taxes imposed by this section. Sellers must 28
report and return all taxes imposed in this section in accordance 29
with rules adopted by the department. 30
(10) For the purposes of this section:31
(a) ((Except as otherwise provided in this subsection, the terms, 32
"spirits" and "package" have )) "Package" has the same meaning as 33
provided in chapter 66.04 RCW; and34
(b) "Spirits" has the meaning provided in chapter 66.04 RCW, 35
except that the term does not include low-proof beverages as defined 36
in RCW 66.04.010. 37
(((b) Until July 1, 2023, for the purposes of the taxes imposed 38
under this section, the term "spirits" does not include mini-bottles 39
of spirits sold by a person who possesses a valid endorsement under 40
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section 2(6), chapter 48, Laws of 2021 and is licensed as a spirits, 1
beer, and wine restaurant under RCW 66.24.400. 2
(c) For the purposes of this subsection, "mini-bottles of 3
spirits" means an original factory-sealed container holding not more 4
than 50 milliliters of spirits.))5
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