The bill mandates the Washington State Institute for Public Policy to conduct a comprehensive study on the state's current alcohol taxation and fee system. This study will focus on taxes and fees that are determined by the sales price, sales volume, or alcohol content of alcohol products. The final report, due by June 30, 2026, will include detailed information on various state taxes and fees applicable to spirits, beer, and wine, as well as historical data on tax rates, sales, and revenues over the past five years. Additionally, the report will analyze alcohol taxation systems in other states and countries, estimate costs for transitioning to a tax system based solely on alcohol content, and assess 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.