Bill > SB5024

This bill provides a tax exemption for small wineries in Washington State by reducing the tax rate on the first 20,000 gallons of table wine or cider sold by a winery in a calendar year. Specifically, for these first 20,000 gallons, wineries will pay a significantly lower tax rate of $0.0528 per liter, compared to the standard tax rates, and will be exempt from other taxes in this section (except for Washington wine commission taxes). The bill aims to support small wineries, which have faced numerous challenges in recent years, including economic downturns, COVID-19 restrictions, wildfire smoke, and adverse weather conditions. The legislature recognizes that many small wineries close annually, resulting in lost tax revenue and community contributions. To assess the effectiveness of this tax preference, the Joint Legislative Audit and Review Committee will conduct evaluations in 2030 and 2035, looking at metrics such as the number of small wineries going out of business, wineries expanding production, and sales and use tax collections. If the evaluations show positive impacts, the legislature intends to extend the tax preference, demonstrating a commitment to supporting the growth and sustainability of small wineries in Washington State.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=5024&Year=2025&Initiative=false