Notice of Introduction for Senate Bill 5375 - Update: 10 Year Analysis Complete
Office of the Governor / Office of Financial Management sent this bulletin at 05/08/2023 09:36 AM PDT
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.
SB 5375, titled AN ACT Relating to taxation of low-proof beverages, has been introduced in the Senate. 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:
|
Fiscal |
Business and occupation tax |
Retail sales tax |
Total |
|
|
|
||||
|
2024 |
$16,000 |
$1,102,000 |
$1,118,000 |
|
|
2025 |
$21,000 |
$1,502,000 |
$1,523,000 |
|
|
2026 |
$22,000 |
$1,603,000 |
$1,625,000 |
|
|
2027 |
$24,000 |
$1,803,000 |
$1,827,000 |
|
|
2028 |
$25,000 |
$1,903,000 |
$1,928,000 |
|
|
2029 |
$27,000 |
$2,103,000 |
$2,130,000 |
|
|
2030 |
$29,000 |
$2,304,000 |
$2,333,000 |
|
|
2031 |
$31,000 |
$2,504,000 |
$2,535,000 |
|
|
2032 |
$33,000 |
$2,704,000 |
$2,737,000 |
|
|
2033 |
$36,000 |
$3,005,000 |
$3,041,000 |
|
|
|
||||
|
Total: |
$264,000 |
$20,533,000 |
$20,797,000 |
|
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:
Department of Revenue
Liquor and Cannabis Board
Bill sponsors and contact information:
Senator Curtis King, Prime Sponsor
Republican
(360) 786-7626
curtis.king@leg.wa.gov
Senator Mark Mullet
Democrat
(360) 786-7608
mark.mullet@leg.wa.gov
Senator Nikki Torres
Republican
(360) 786-7684
Nikki.Torres@leg.wa.gov
Senator Ann Rivers
Republican
(360) 786-7634
ann.rivers@leg.wa.gov
Senator Judy Warnick
Republican
(360) 786-7624
judith.warnick@leg.wa.gov
Senator Lynda Wilson
Republican
(360) 786-7632
lynda.wilson@leg.wa.gov
Legislative Bill Information Website:
http://apps.leg.wa.gov/billinfo/
Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp