ESSB 5368
In CommitteeSenate
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 conduct a comprehensive study of Washington’s alcohol taxes and fees—including those based on price, volume, or alcohol content—and produce a detailed report with 25 years of historical data and comparisons to other states and countries. The report must be delivered to the legislature by December 31, 2025.
- The Department of Revenue must study Washington’s current alcohol taxes and fees—specifically those based on sales price, sales volume, or alcohol content—for spirits, beer, and wine.
- The study must include a breakdown of all state-level taxes and fees (including sales tax and business and occupation tax) by product type.
- The report must provide 25 years of historical data on alcohol sales, tax and fee revenues (both total and per capita), and trends over time.
- The report must also compare Washington’s alcohol tax and sales data to other states and countries, especially focusing on differences in state-controlled vs. private sales systems and how taxes are structured (by volume, price, or alcohol content).
- The Liquor and Cannabis Board must assist by providing relevant data to support the study.
- The final report must be submitted to the legislature by December 31, 2025.
Who is affected
- **Department of Revenue** — Responsible for conducting the study and producing the final report on alcohol taxes and fees.
- **Liquor and Cannabis Board** — Must provide data and cooperate with the Department of Revenue on 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 that sell alcohol (e.g., liquor stores, breweries, wineries, restaurants) may be indirectly affected if the study leads to future tax or regulatory changes.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill mandates a 25-year analysis of alcohol tax and fee revenues—both total and per capita—which could inform future tax reforms that reduce regressive taxation on low- and middle-income households who spend a higher share of income on alcohol.
FinancialLean peopleRef: Sec. 1(2)(d), (e)By comparing Washington’s tax structure to other states (especially state-controlled vs. private systems), the study may reveal opportunities to reallocate alcohol tax revenue toward local services (e.g., substance use treatment, public health) in ways that benefit communities most impacted by alcohol-related harms.
Local GovernmentLean peopleRef: Sec. 1(2)(f), (g), (h)The historical per capita sales and revenue data could help quantify alcohol consumption trends and their correlation with public health outcomes—informing future policies aimed at reducing alcohol-related harm (e.g., liver disease, fetal alcohol spectrum disorders), which disproportionately affect low-income and rural communities.
HealthcareLean peopleRef: Sec. 1(2)(a), (b), (c)The bill requires interagency coordination (DOR and Liquor and Cannabis Board), improving data transparency and institutional capacity for future fiscal analysis—benefiting legislative oversight and potentially leading to more evidence-based budget decisions.
Local GovernmentRef: Sec. 1(1), (3), (4)By comparing state-controlled vs. private retail systems, the study may identify efficiency or equity gains that could support future reforms—potentially benefiting small retailers if the state shifts toward a more open market, though this is speculative without legislative follow-up.
Business & EmploymentRef: Sec. 1(2)(f), (g)
Who Is Most Affected
Low- and middle-income households may benefit if the study leads to reforms that reduce regressive alcohol taxes—currently a larger share of income for lower earners—though no direct benefit is guaranteed without subsequent legislation.
State and local governments could benefit from improved data to target alcohol-related public health spending or adjust tax structures to balance revenue needs with equity goals.
Alcohol retailers and producers may benefit if the study leads to tax reforms that reduce compliance burdens or shift taxation away from volume-based (which penalizes low-margin producers) toward value-based systems—but the bill itself imposes no new requirements on them.
Public health advocates and researchers gain access to 25 years of standardized, state-level alcohol tax and sales data—enabling better analysis of alcohol policy impacts on health disparities.
The Department of Revenue and Liquor and Cannabis Board gain enhanced data-sharing protocols and analytical capacity, but must allocate staff time to a non-mandatory study—no direct financial gain, but improved institutional knowledge.