This bill proposes a tax exemption for the first 20,000 gallons of wine sold by a winery in Washington state, specifically targeting table wine and cider. The new legal language specifies that, until January 1, 2035, a winery's sale of the first 20,000 gallons of table wine or cider in a calendar year will be subject to a reduced tax rate of $0.0528 per liter, and will not be subject to any other taxes under the current law, except for those imposed for the Washington wine commission. Additionally, the bill amends existing tax provisions to clarify that certain taxes will not apply to this exemption.

Furthermore, the bill includes a performance statement that categorizes this tax preference as one intended to create or retain jobs, particularly in the small winery sector, which has faced significant challenges in recent years. The legislation mandates evaluations of the tax preference by the joint legislative audit and review committee, with an initial review due by January 1, 2029, and a final evaluation by January 1, 2034. This aims to ensure accountability and assess the effectiveness of the tax exemption in supporting the wine industry in Washington.

Statutes affected:
Substitute Bill: 66.24.210