The proposed bill aims to provide a tax exemption for the first 20,000 gallons of wine sold by a winery in Washington state. It amends existing tax regulations under RCW 66.24.210, specifically introducing a new provision that states the first 20,000 gallons of table wine or cider sold by a winery in a calendar year will be taxed at a reduced rate of $0.0528 per liter. Additionally, these sales will not be subject to any other taxes under the section, except for those imposed for the Washington wine commission. The bill also specifies that taxes collected from this exemption will be deposited into the liquor revolving fund and allocated to Washington State University.

Furthermore, the bill includes a performance statement that outlines the legislature's intent to support small wineries, which have faced numerous challenges in recent years. It mandates evaluations of the tax preference by the joint legislative audit and review committee, with initial findings due by January 1, 2028, and a final evaluation by January 1, 2033. The evaluations will assess the impact of the tax exemption on the sustainability and growth of small wineries, with the potential for extending the tax preference based on positive outcomes such as reduced business closures and increased sales tax revenue.