This bill mandates the Washington State Institute for Public Policy to conduct a comprehensive study on the state's current alcohol taxation and fee system. The study will focus on taxes and fees that are determined by the sales price, sales volume, or alcohol content of products, specifically spirits, beer, and wine. The final report, due by June 30, 2026, will include detailed information on the types of applicable state taxes and fees, historical and current rates, annual sales data, and revenue generated over the past five years. Additionally, the report will analyze tax systems in other states and countries, estimated costs for transitioning to a new tax system based solely on alcohol content, and the economic impact of local breweries, wineries, and distilleries.

To facilitate this study, the liquor and cannabis board and the department of revenue are required to cooperate with the Washington State Institute for Public Policy by providing relevant data. The section of the bill establishing this study will expire on July 1, 2026.