wa-law.org > bill > 2023-24 > SB 5375 > Substitute Bill

SB 5375 - Low-proof beverages/tax

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Section 1

In this title, unless the context otherwise requires:

Section 2

There is levied and collected a tax on the sale of low-proof beverages equal to $2.50 per gallon as follows:

  1. A spirits distributor under the terms of its license shall pay the tax imposed by this section on sales of low-proof beverages to spirits retailers.

  2. A distillery or craft distillery that self-distributes low-proof beverages under the terms of its license shall pay the tax imposed by this section on sales to spirits retailers.

  3. A distillery or craft distillery that sells low-proof beverages directly to consumers under the terms of its license shall pay the tax imposed by this section on those sales.

  4. A holder of a spirits out-of-state certificate with a direct shipment endorsement that self-distributes under the terms of its license shall pay the tax imposed by this section on sales to spirits retailers.

Section 3

  1. There is levied and collected a tax upon each retail sale of spirits in the original package at the rate of 15 percent of the selling price.

  2. There is levied and collected a tax upon each sale of spirits in the original package at the rate of 10 percent of the selling price on sales by a spirits distributor licensee or other licensee acting as a spirits distributor pursuant to Title 66 RCW to restaurant spirits retailers.

  3. There is levied and collected an additional tax upon each sale of spirits in the original package by a spirits distributor licensee or other licensee acting as a spirits distributor pursuant to Title 66 RCW to a restaurant spirits retailer and upon each retail sale of spirits in the original package by a licensee of the board at the rate of $1.72 per liter.

  4. An additional tax is imposed equal to 14 percent multiplied by the taxes payable under subsections (1), (2), and (3) of this section.

  5. An additional tax is imposed upon each sale of spirits in the original package by a spirits distributor licensee or other licensee acting as a spirits distributor pursuant to Title 66 RCW to a restaurant spirits retailer and upon each retail sale of spirits in the original package by a licensee of the board at the rate of seven cents per liter. All revenues collected during any month from this additional tax must be deposited in the state general fund by the 25th day of the following month.

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    1. An additional tax is imposed upon retail sale of spirits in the original package at the rate of 3.4 percent of the selling price.

    2. An additional tax is imposed upon retail sale of spirits in the original package to a restaurant spirits retailer at the rate of 2.3 percent of the selling price.

    3. An additional tax is imposed upon each sale of spirits in the original package by a spirits distributor licensee or other licensee acting as a spirits distributor pursuant to Title 66 RCW to a restaurant spirits retailer and upon each retail sale of spirits in the original package by a licensee of the board at the rate of 41 cents per liter.

    4. All revenues collected during any month from additional taxes under this subsection must be deposited in the state general fund by the 25th day of the following month.

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    1. An additional tax is imposed upon each retail sale of spirits in the original package at the rate of $1.33 per liter.

    2. All revenues collected during any month from additional taxes under this subsection must be deposited by the 25th day of the following month into the general fund.

  8. The tax imposed in RCW 82.08.020 does not apply to sales of spirits in the original package.

  9. The taxes imposed in this section must be paid by the buyer to the seller, and each seller must collect from the buyer the full amount of the tax payable in respect to each taxable sale under this section. The taxes required by this section to be collected by the seller must be stated separately from the selling price, and for purposes of determining the tax due from the buyer to the seller, it is conclusively presumed that the selling price quoted in any price list does not include the taxes imposed by this section. Sellers must report and return all taxes imposed in this section in accordance with rules adopted by the department.

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    1. Except as otherwise provided in this subsection, the terms, "spirits" and "package" have the same meaning as provided in chapter 66.04 RCW.

    2. Until July 1, 2023, for the purposes of the taxes imposed under this section, the term "spirits" does not include mini-bottles of spirits sold by a person who possesses a valid endorsement under section 2(6), chapter 48, Laws of 2021 and is licensed as a spirits, beer, and wine restaurant under RCW 66.24.400.

    3. For the purposes of subsections (3), (5), (6)(c), (7), and (8) of this section, the term "spirits" does not include low-proof beverages as defined in RCW 66.04.010.

    4. For the purposes of this subsection, "mini-bottles of spirits" means an original factory-sealed container holding not more than 50 milliliters of spirits.

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