Notice of Introduction for House Bill 1344

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HB 1344, titled AN ACT Relating to taxation of low-proof beverages, 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:

Liquor and Cannabis Board:

This bill defines “low-proof beverage” as any beverage that is 16oz or less and that contains more than 0.5% alcohol by volume and less than 7% alcohol by volume, but does not include wine, malt beverages, or malt liquor.  Sales of “low-proof beverage” would be exempt from the 17% spirits retailer license issuance fee.  A new tax is added on the sale of low-proof beverages equal to $2.50/gallon, payable by a spirits distributor, distillery, craft distillery, and spirits COA with direct ship endorsement.  Sales of “low-proof beverage” are also exempt from the spirits distributor license issuance fee.

The effect of these changes is indeterminate as the agency does not know the volume of sales of beverages that would be considered "low-proof" and thus the loss of revenue from the exemptions to the spirits retailer license issuance fee and spirits distributor license issuance fee can not be assumed.

Likewise, since the volume of sales of these beverages is unknown, it is unknown what the increase in revenue from the $2.50/gallon tax would be.

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

Liquor and Cannabis Board


Bill sponsors and contact information:

Representative Mike Chapman, Prime Sponsor
Democrat
(360) 786-7916
mike.chapman@leg.wa.gov

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

Representative Michelle Caldier
Republican
(360) 786-7802
michelle.caldier@leg.wa.gov




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

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