Bill > HB1384

This bill provides a tax exemption for small wineries in Washington state by creating a reduced tax rate for the first 20,000 gallons of table wine or cider sold by a winery in a calendar year. Under the new provision, wineries selling less than 20,000 gallons will be taxed at a lower rate of $0.0528 per liter (instead of the standard 20.25 cents per liter) and will be exempt from other taxes on those first 20,000 gallons, except for a specific Washington wine commission tax. The bill aims to support small wineries by acknowledging their challenges in entering and surviving in the wine industry, including economic difficulties from events like the Great Recession, COVID-19 pandemic, and climate change impacts such as wildfires and extreme weather. The legislature intends to evaluate the effectiveness of this tax preference by measuring its impact on the number of Washington wineries, wine industry jobs, and wine excise tax collections. If the tax preference is found to be successful in promoting small wineries by the end of the 2024 fiscal year, the legislature may consider extending the provision. The taxes collected under this new provision will be deposited in the liquor revolving fund and are subject to existing allocation rules.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1384&Year=2025&Initiative=false