WA SB5054

Wineries selling less than 20,000 gallons of table wine or cider annually qualify for a reduced tax rate of $0.0528 per liter, exempting them from the standard wine tax of 20.25 cents per liter and most additional taxes

The exemption applies only to the first 20,000 gallons sold; qualifying wineries must still pay the Washington Wine Commission assessment of 0.25 cents per liter

Tax revenues from the reduced rate are deposited in the liquor revolving fund and allocated to Washington State University

The stated policy objective is to support small wineries that lack economies of scale and distribution networks available to larger producers, particularly after challenges from the Great Recession, COVID-19, and climate impacts

The Joint Legislative Audit and Review Committee will evaluate whether the preference increases the number of Washington wineries, wine industry jobs, or wine excise tax collections compared to fiscal year 2024