HB 1624
In CommitteeHouse
Alcohol taxes and fees study
Studying taxes and fees related to alcohol.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill requires the Department of Revenue to study Washington’s current system of alcohol taxes and fees—especially those tied to price, volume, or alcohol content—and deliver a detailed report to the legislature by December 31, 2025. It also mandates cooperation from the Liquor and Cannabis Board and includes comparisons with other states and countries.
- The Department of Revenue must conduct a comprehensive study of Washington’s alcohol taxes and fees that are based on sales price, sales volume, or alcohol content.
- The study must detail current and historical tax/fee rates for spirits, wine, and beer, including general taxes like sales and business and occupation (B&O) taxes.
- The report must include 25 years of state-level data on alcohol sales (total and per capita), and tax/fee revenue (total and per capita), broken down by product type and tax category.
- The report must compare Washington’s alcohol tax and sales data to other states and countries, especially focusing on differences in whether states control off-premises spirits sales or use different tax bases (e.g., volume vs. price vs. alcohol content).
- The Liquor and Cannabis Board must assist by providing relevant data to support the study.
- The study must be completed and submitted to the legislature by December 31, 2025.
Who is affected
- **Department of Revenue** — The agency will lead the study, gather data, and produce the final report on alcohol taxes and fees.
- **Liquor and Cannabis Board** — Must provide data (e.g., licensing, sales, enforcement records) to support the study.
- **Washington State Legislature** — Will receive the final report and may use it to inform future legislation on alcohol taxation.
- **Alcohol retailers and producers** — Businesses selling alcohol (e.g., grocery stores, liquor stores, wineries, breweries) may be indirectly affected if future tax changes result from the study.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill mandates comparative analysis of alcohol taxation across states and countries, including how state-controlled vs. private retail models and different tax bases (volume, price, alcohol content) affect sales and revenue. This could inform evidence-based policy decisions that reduce harmful drinking patterns—e.g., by identifying whether volume- or alcohol-content-based taxes better reduce consumption—potentially improving public health outcomes.
Public SafetyLean peopleRef: Sec. 1(2)(f), (g), (h)By providing 25 years of per capita alcohol sales and tax revenue data, the study enables more accurate forecasting of revenue impacts of future tax changes. This improves fiscal planning for the state and local governments, helping avoid budget shortfalls that could lead to service cuts affecting low- and middle-income residents.
FinancialLean peopleRef: Sec. 1(2)(c)-(e)The bill requires a detailed inventory of current and historical alcohol taxes and fees by product type. This transparency may help small brewers, wineries, and retailers better understand their tax burden and plan accordingly—though it does not change current obligations.
Business & EmploymentRef: Sec. 1(2)(a)-(b)By requiring the Liquor and Cannabis Board to share data with the Department of Revenue, the bill improves interagency coordination, potentially streamlining future regulatory or enforcement efforts that affect local law enforcement and licensing agencies.
Local GovernmentRef: Sec. 1(4)The study’s focus on taxes tied to alcohol content (e.g., per-proof tax) could support future policies that internalize public health costs of excessive consumption—such as funding prevention programs—though the bill itself makes no such changes.
HealthcareRef: Sec. 1(1)
Who Is Most Affected
State and local governments benefit from improved data on alcohol taxation, enabling more accurate budgeting and potential future reforms that could reduce alcohol-related public health costs. The bill itself imposes no new costs or benefits, but the analysis may support future policies that benefit public budgets and health systems.
Alcohol retailers and producers gain greater transparency about the tax structure, but no direct financial benefit accrues. Small producers may benefit slightly from clearer data, but large distributors are unlikely to be affected meaningfully. The bill does not alter current obligations.
The Department of Revenue and Liquor and Cannabis Board must allocate staff time to coordinate and produce the report, but the fiscal impact is stated as minimal and uses existing resources. No significant burden is imposed beyond routine data reporting.
The legislature gains a robust, nonpartisan data foundation to evaluate future alcohol tax reforms—potentially leading to more equitable or effective policies. However, the bill itself does not mandate any changes, so benefits are speculative and contingent on future action.
Everyday Washingtonians may benefit indirectly if future reforms reduce alcohol-related harms or improve revenue stability for public services. However, since the bill is purely analytical and contains no direct policy changes, impacts are highly speculative and unlikely to be material in the short term.