Bill > SB5368

This bill requires the Washington State Institute for Public Policy (WSIPP) to conduct a comprehensive study on the state's alcohol taxation and fee system, with the goal of producing a detailed report by June 30, 2026. The study will examine taxes and fees for spirits, beer, and wine that are based on sales price, volume, or alcohol content, and must include specific details such as current and historical tax rates, annual sales and revenue data from 2008 to 2020, and comparisons with other states and countries. The report will analyze different taxation approaches, such as comparing states with state-controlled liquor sales versus private sales, and explore potential tax systems based solely on alcohol content. Additionally, the study will estimate the costs of transitioning to a new tax system, calculate revenue-neutral tax rates, and assess the economic impact on local breweries, wineries, and distilleries, including job and wage considerations. The liquor and cannabis board and department of revenue are required to assist WSIPP by providing relevant data. The bill includes an expiration date of July 1, 2026, after which the study and its provisions will no longer be in effect.

Budget and Finance, Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=5368&Year=2025&Initiative=false