The proposed bill aims to provide a tax exemption for the first 20,000 gallons of wine sold by wineries in Washington state. It amends RCW 66.24.210 to introduce a new tax structure for wineries that sell less than 20,000 gallons of table wine or cider in a calendar year. Specifically, these wineries will be subject to a reduced tax rate of $0.0528 per liter for their sales, and they will not be liable for any other taxes under this section on the first 20,000 gallons sold, except for taxes imposed for the Washington wine commission. Additionally, the bill stipulates that taxes collected from this exemption will be deposited into the liquor revolving fund.

Furthermore, the bill includes a tax preference performance statement that outlines the legislature's intent to support small wineries, which face unique challenges compared to larger operations. The performance statement emphasizes the goal of promoting the growth and stability of small wineries, particularly in light of recent economic hardships and environmental challenges. If a review finds that the tax preference successfully promotes small wineries, the legislature intends to consider extending the expiration date of this tax preference.

Statutes affected:
Original Bill: 66.24.210