Notice of Public Hearing for House Bill 1432 - Update: 10 Year Analysis Completed

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HB 1432, titled AN ACT Relating to authorizing direct to consumer sales of distilled spirits by out-of-state manufacturers, has been scheduled for a public hearing by the House Committee on Commerce & Gaming.

Date and Time: 02/11/2021 1:30PM (Subject to change by the Legislature.)
Location: , Virtual, ,

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:

Liquor and Cannabis Board:

Section 3(3) of the bill states that holders of a spirits shipper’s permit must pay the tax under RCW 66.24.210 (wine tax) for sales of spirits to Washington state residents.  Cash receipts are indeterminate from this tax as there are technical issues regarding applying the wine tax to spirits.  As an example, wine tax has three different rates: table wine (under 14% alcohol), fortified wine (over 14% alcohol), and cider (defined as a table wine with alcohol content between 0.5% and 7% by volume, made from apples or pears).  The bill does not make clear what tax rate is intended to apply to the spirits shipped by a holder of a spirit shipper's permit.

Section 6 states that a fee for a spirits shipper's permit may be established by the Washington State Liquor and Cannabis Board ("Board").  Cash receipts from the spirit shipper's permit are indeterminate as it is unknown what amount, if any, the Board may set for this permit.

Ten-year projection prepared in consultation with the following agencies:

Liquor and Cannabis Board


Bill sponsors and contact information:

Representative Brandon Vick, Prime Sponsor
Republican
(360) 786-7850
brandon.vick@leg.wa.gov

Representative Robert Sutherland
Republican
(360) 786-7967
SUTHERLA_RO@leg.wa.gov


House Committee on Commerce & Gaming members and contact information:

Representative Kelly Chambers
Republican
(360) 786-7948
CHAMBERS_KE@leg.wa.gov

Representative Steve Kirby
Democrat
(360) 786-7996
Steve.Kirby@leg.wa.gov

Representative Shelley Kloba
Democrat
(360) 786-7900
Shelley.Kloba@leg.wa.gov

Representative Drew MacEwen
Republican
(360) 786-7902
drew.macewen@leg.wa.gov

Representative Melanie Morgan
Democrat
(360) 786-7906
MORGAN_ME@leg.wa.gov

Representative Eric Robertson
Republican
(360) 786-7866
Eric.Robertson@leg.wa.gov

Representative Brandon Vick
Republican
(360) 786-7850
brandon.vick@leg.wa.gov

Representative Emily Wicks
Democrat
(360) 786-7864
WICKS_EM@leg.wa.gov

Representative Sharon Wylie
Democrat
(360) 786-7924
Sharon.Wylie@leg.wa.gov



Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp