This bill proposes a tax exemption for the first 20,000 gallons of wine sold by a winery in Washington state, amending RCW 66.24.210. Specifically, it introduces a new provision that allows wineries to pay a reduced tax rate of $0.0528 per liter for table wine or cider on their first 20,000 gallons sold in a calendar year. Additionally, these sales will not be subject to any other taxes under this section, except for those imposed for the Washington wine commission. The bill also stipulates that taxes collected from this exemption will be deposited into the liquor revolving fund and allocated to Washington State University.

Furthermore, the bill emphasizes the legislature's intent to support small wineries, which have faced numerous challenges in recent years, including economic downturns and environmental factors. It establishes a performance statement for evaluating the effectiveness of this tax preference, with the Joint Legislative Audit and Review Committee tasked with conducting evaluations by 2030 and 2035. The findings will determine whether the tax preference should be extended based on the survival and growth of small wineries in the state.

Statutes affected:
Original Bill: 66.24.210