Bill > SB5054

This bill provides a tax exemption for small wineries in Washington state by reducing the tax rate for wineries that sell less than 20,000 gallons of table wine or cider in a calendar year. Specifically, these smaller wineries will be subject to a lower tax rate of $0.0528 per liter for table wine or cider, and will be exempt from other taxes on their first 20,000 gallons of sales (except for a specific Washington wine commission tax). The legislature's motivation is to support small wineries, which face challenges entering and surviving in the industry, including economic difficulties from the Great Recession, COVID-19 pandemic, and climate change impacts. The bill includes a performance statement that allows for future review of the tax preference, with the intent to extend the exemption if it successfully promotes small wineries by increasing the number of Washington wineries, wine industry jobs, or wine excise taxes collected. The taxes collected under this provision will be deposited in the liquor revolving fund and are subject to allocation to Washington State University. The bill reflects a targeted effort to provide economic support to small, local wine producers by easing their tax burden during their initial years of operation.

Budget and Finance, Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=5054&Year=2025&Initiative=false