House Introduction Notice for 2609 HB
Office of the Governor / Office of Financial Management sent this bulletin at 01/30/2018 02:14 PM PST
You are receiving this email as a subscriber to the Initiative 960 email list. RCW 43.135.031 (I-960) requires that notices be sent each time a bill that raises taxes or fees
is: introduced in either house; scheduled for a public hearing; approved by any legislative committee; or passed by either house of the Legislature.
Please note: This email message was sent from a notification-only address. Please do not reply to this message.
HB 2609, titled AN ACT Relating to modernizing and clarifying in-state distilled spirits production licenses and fees, has been introduced in the House of Representatives. The Office of Financial Management has identified this bill as requiring
a ten-year projection of increased cost to the taxpayers or affected fee payers.
Ten-year projection:
This bill creates a number of new licenses, permits, endorsements, and excise fees on spirits distillers. The Liquor and Cannabis Board estimates that the impact of these will be revenue-neutral since this bill is designed to replace the existing distillery framework, but the true impact of these changes is indeterminate. The Board also anticipates there could be an increase in the number of special occasion licenses and permits issued simply because there will be more locations available to have these events. However, the number is unknown and the impact is still indeterminate. The bill also creates a retail license issuance fee credit for Distilled Spirits Producers. The credit varies depending on the percentage of raw materials used in production, that were grown in Washington state. The effect of this credit is indeterminate as the Board does not have data on raw materials used in production.
The new license types, endorsements, excise fees, and credits are listed below.
Licenses/permits:
Operational Premises Permit - $100/year per location
Distilled Spirits Brand Owner (small) - $2,500/year
Distilled Spirits Brand Owner (large) - $5,000/year
Distilled Spirits Producer (small) - $300/year
Distilled Spirits Producer (medium) - $1,000/year
Distilled Spirits Producer (large) - $5,000/year
Merchant Bottlers (small) - $2,500/year
Merchant Bottlers (large) - $5,000/year
Endorsements to a Distilled Spirits Producer license:
Offsite tasting rooms (1st off-site) - $100/year
Offsite tasting rooms (additional) - $1,000/year per location
Unlimited warehousing - $100/year
Hosting licensed or permitted events - $100/year
Selling/serving samples or bottles at festivals and farmers markets - $100/year
Farmers Market endorsement - $25/year per farmers market
Excise Fees
Merchant Bottler Production Excise Fee - $.25/liter
Distilled Spirits Brand Owner Bond Removal Excise Fee - $.25/liter
Retail license issuance fee credit for Distilled Spirits Producers (percent of raw materials grown in Washington state that are used for production of spirits)
90% to 100% - 100% credit against the 17% fee
50% to 90% - 75% credit against the 17% fee
0% to 50% - 50% credit against the 17% fee
Bill sponsors and contact information:
Representative Gael Tarleton, Prime Sponsor
Democrat
Seattle
(360) 786-7860
Gael.Tarleton@leg.wa.gov
Representative Jesse Young
Republican
Gig Harbor
(360) 786-7964
Jesse.Young@leg.wa.gov
Representative Brandon Vick
Republican
Vancouver
(360) 786-7850
Brandon.Vick@leg.wa.gov
Representative Michelle Caldier
Republican
Port Orchard
(360) 786-7802
Michelle.Caldier@leg.wa.gov
Representative Pat Sullivan
Democrat
Kent
(360) 786-7858
Pat.Sullivan@leg.wa.gov
Legislative Bill Information Website:
http://apps.leg.wa.gov/billinfo/
Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp