Date of Adoption: June 14, 2000.

Purpose: The Liquor Control Board is currently undergoing a review of all of its rules to make them clear and usable, per Governor Locke's Executive Order 97-02. Proposed chapter 314-19 WAC would replace other WACs and policies that outline the requirements for beer and wine tax reporting and payment.

Citation of Existing Rules Affected by this Order: Repealing WAC 314-16-130, 314-20-010, 314-20-040, 314-20-060, 314-20-150, 314-20-180, 314-24-095, 314-24-110 and 314-26-010; and amending WAC 314-20-015, 314-20-160, 314-20-170, 314-24-120, and 314-24-160.

Statutory Authority for Adoption: RCW 66.08.030, 66.24.210, 66.24.230, 66.24.290, 66.24.305, 66.24.270, 66.24.215, 66.24.290, 66.24.580, 66.24.206.

Adopted under notice filed as WSR 00-09-095 on April 19, 2000.

Changes Other than Editing from Proposed to Adopted Version:

•	During the 2000 legislative session, the definition of a domestic brewery was changed to include a brand owner whose malt beverage is brewed under contract with an in-state brewery. Therefore, the term "domestic brewery/brand owner" was added to the proposed rules.
•	WAC 314-19-015 (5)(b), during the 2000 legislative session, RCW 66.28.040 was amended to allow out-of-state breweries and wineries to donate beer or wine to nonprofit charitable associations in Washington. Language was added to this rule to outline the beer and wine tax payment requirements for these donations.
•	WAC 314-19-015 (2)(c), What are the monthly reporting and tax payment requirements? Language was deleted that stated that distributors could claim a refund or credit for taxes paid on sales to the Washington State Liquor Control Board. When distributors sell beer and wine to the Liquor Control Board, it includes a markup to cover the excise tax paid by the distributor. The product is not exempt from state taxes. The technical correction reflects current practice.
•	WAC 314-19-015 (4)(a)(vi), during the 2000 legislative session, RCW 66.24.170 was amended to state that a domestic winery may serve tastings of its own products and sell wine of its own production at up to two additional locations. Language was added to this rule to outline the wine tax payment requirements for product tasted or sold from these additional locations.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 5, Repealed 9.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 5, Repealed 9.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 5, Repealed 9. Effective Date of Rule: Thirty-one days after filing.

July 15, 2000

Eugene A. Prince

Chairman

The purpose of this chapter is to outline the beer and wine tax reporting and payment requirements for the following liquor licensees:

Type of liquor license	Laws that outline tax rates and requirements
(a) Washington beer and/or wine distributor	RCWs 66.24.210, 66.24.230, 66.24.290, 66.24.305
(b) Washington beer and/or wine importer	RCW 66.24.230
(c) domestic brewery	RCWs 66.24.270, 66.24.290, 66.24.305
(d) domestic brewery/brand owner	RCWs 66.24.270, 66.24.290, 66.24.305
(e) microbrewery	RCWs 66.24.270, 66.24.290, 66.24.305
(f) domestic winery	RCWs 66.24.210, 66.24.215, 66.24.230, 66.24.305
(g) public house	RCW 66.24.290, 66.24.580
(h) beer certificate of approval holder	RCW 66.24.270
(i) wine certificate of approval holder	RCWs 66.24.210, 66.24.206

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The following definitions are to clarify the purpose and intent of the rules and laws governing beer and wine tax reporting and payment requirements. Additional definitions can be found in RCW 66.04.010.

     (1) "Missing." A monthly tax report or payment is considered missing if it is more than thirty days past the required filing date. Required filing dates are outlined in RCW 66.24.206, RCW 66.24.210, RCW 66.24.270, RCW 66.24.290 and WAC 314-19-015.

     (2) "Samples" are beer and/or wine furnished to retail licensees for the purpose of negotiating a sale, per RCW 66.28.040. See WAC 314-64-080 for sampling procedures.

     (3) "Tastings" are beer and/or wine products provided to customers at no charge for the purpose of promoting a sale, that are consumed on the premises of a domestic brewery, microbrewery, winery, or additional winery locations as authorized by RCW 66.24.170(4). Tastings are not taxable under this title.

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(1) The required monthly beer and/or wine tax reports must be:

     (a) on a form furnished by the board or in a format approved by the board;

     (b) filed every month, including months with no activity or taxes due; and

     (c) submitted, with the tax due, to the board on or before the twentieth day of each month, for the previous month (for example, a report listing transactions for the month of January is due by February 20). When the twentieth day of the month falls on a Saturday, Sunday, or a legal holiday, the filing must be postmarked by the U.S. Postal Service no later than the next postal business day.

Type of licensee	Tax Payment Requirements
(2) Washington beer and/or wine distributor	(a) Distributors must pay taxes on all beer and/or wine received during the preceding calendar month, including samples received at no charge. The total tax due (per barrel for beer and per liter for wine) is to be paid by the first distributor to receive the product and must be included with the monthly report.      (b) Distributors do not pay taxes on beer and/or wine received from another in-state licensed distributor who has already paid the Washington State tax on the product.      (c) Distributors may claim a tax refund or credit for the following (see WAC 314-19-030 for information on claiming a tax refund or credit):      (i) shipments exported directly to a point outside the state of Washington, including sales to interstate common carriers;      (ii) sales to any military reservation in Washington State;      (iii) samples on which the tax has already been paid; and      (iv) product that is deemed unsalable due to freight damage or other causes that occurred prior to receipt by the distributor, subject to the following conditions:      (A) the unsalable product must be destroyed within the state of Washington (per RCW 66.24.305);      (B) the licensee must notify their local liquor enforcement officer in advance for destruction of more than fifty cases of wine or two hundred cases of beer;      (C) the licensee must report the destroyed product on the next required monthly report; and      (D) the licensee must keep records showing the reason for the destruction and an inventory of products destroyed. These records must be kept on the licensed premises and available for inspection by board employees for a period of two years.
(3) Washington beer and/or wine importer	Importers must pay taxes on samples received during the preceding calendar month, as follows:      (a) If the samples are used by the importer within the state of Washington, the importer must pay the tax.      (b) If samples are provided to a distributor for use by the distributor, the distributor must pay the tax.
(4) Domestic breweries, domestic brewery/brand owner, microbreweries, and domestic wineries	(a) Domestic breweries, domestic breweries/brand owners, microbreweries, and domestic wineries must pay taxes on beer and/or wine that is:      (i) sold at retail on the licensed premises (or additional winery locations as authorized by RCW 66.24.170(4)), including retail sales to out-of-state residents;      (ii) sold to retail licensees;      (iii) furnished as samples to licensees as authorized by RCW 66.28.040 and WAC 314-64-080;      (iv) provided as donations to qualifying non-profit organizations, per RCW 66.28.040; and      (v) received via an inter-plant transfer if used as outlined in above subsections (i), (ii), (iii), or (iv).      (b) Domestic breweries, domestic breweries/brand owners, microbreweries, and domestic wineries do not pay tax on beer and/or wine that is:      (i) sold to distributors;      (ii) shipped out of a particular location for an inter-plant transfer;      (iii) exported directly to a point outside the state of Washington, including sales to interstate common carriers;      (iv) sold to the Washington State liquor control board;      (v) sold to any military reservation in Washington State; or      (vi) provided as a tasting on the brewery or winery premises or at additional winery locations as authorized by RCW 66.24.170(4). See WAC 314-19-010(3) for the definition of "tastings."
(5) Out-of-state beer and/or wine certificate of approval holders	(a) Certificate of approval holders must file a report showing the quantity of all beer and/or wine sold or delivered to each licensed beer or wine distributor or importer during the preceding month.      (b) Tax is due from the certificate of approval holder only on samples shipped to licensed agents, directly to retailers, or to non-profit charitable associations within Washington State. See WAC 314-64-080 for information on providing samples. See RCW 66.28.040 regarding donations to nonprofit charitable associations.
(6) Public House licensees	Public house licensees must pay taxes on all sales of their own product during the preceding calendar month.

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The board may take the following actions against a domestic brewery, domestic brewery/brand owner, microbrewery, domestic winery, beer/wine distributor, beer/wine importer, public house licensee, or beer/wine certificate of approval holder in order to collect any of the reports or taxes due that are outlined in this title.

(1) Suspension or revocation of license	(a) Failure to make a report and/or pay the taxes in the manner and dates outlined in this chapter will be sufficient ground for the board to suspend or revoke a liquor license or certificate of approval (per RCW 66.08.150, RCW 66.24.010, RCW 66.24.120, 66.24.206, and 66.24.270).      (b) The suspension will remain in effect until all missing reports and/or taxes have been filed with the board (see WAC 314-19-010(1) for the definition of "missing").
(2) Penalties	A penalty will be assessed on any tax payments postmarked after the twentieth day of the month following the month of sale (per the reporting requirements outlined in WAC 314-19-015, RCW 66.24.290, and RCW 66.24.210). When the twentieth day of the month falls on a Saturday, Sunday, or a legal holiday, the filing must be postmarked by the U.S. Postal Service no later than the next postal business day.
(3) Surety bond requirements	(a) What is a surety bond? A "surety bond" is a type of insurance policy that guarantees beer and/or wine tax payment to the state. The surety bond must be:      (i) executed by a surety company authorized to do business in the state of Washington;      (ii) on a form and in an amount acceptable to the board;      (iii) payable to the Washington state liquor control board; and      (iv) conditioned that the licensee will pay the taxes and penalties levied by RCW 66.24.210 and/or RCW 66.24.290.      (v) As an option to obtaining a surety bond, a licensee may create an assignment of savings account for the board in the same amount as required for a surety bond. Requests for this option must be submitted in writing to the board's financial division.
	(b) When will the board require a surety bond? If any of the following occur at one or more licensed locations, the board will require the licensee to obtain a surety bond or assignment of savings account for each licensed location, within twenty-one days:      (i) a report or tax payment is missing, as defined in WAC 314-19-010(1), for two or more consecutive months; or      (ii) a report or tax payment is missing, as defined in WAC 314-19-010(1), two or more times within a two year period.
	(c) What will happen if the licensee does not acquire the surety bond or savings account? Failure to meet the bonding or savings account requirements outlined in subsections (a) and (b) of this rule may result in immediate suspension of license privileges until all missing reports are filed and late taxes have been paid.
	(d) In what amount and for how long will the board require a surety bond? The amount of a surety bond or savings account required by this chapter must be either $3,000, or the total of the highest four months' worth of tax liability for the previous twelve month period, whichever is greater.      (i) the licensee must maintain the bond for at least two years. After the two year period the licensee may request an exemption as outlined in subsection (f) of this rule.      (iii) Surety bond and savings account amounts will be reviewed annually and compared to the last twelve months' tax liability of the licensee. If the current bond or savings account amount does not meet the requirements outlined in this section, the licensee will be required to increase the bond amount or amount on deposit within twenty-one days.
	(e) What action will the board take when a licensee holds a surety bond and does not pay taxes due or pays late? If a licensee holds a surety bond or savings account, the board will immediately start the process to collect overdue taxes from the surety company or assigned account. If the exact amount of taxes due is not known due to missing reports, the board will estimate the taxes due based on previous production, receipts, and/or sales.
	(f) Can a licensee request an exemption to the surety bond or savings account requirement? A licensee may make a written request to the board's financial division for an exemption from the surety bond or assignment of savings account requirements. The board will grant an exemption once the following criteria are met for each of the requesting licensee's locations:      (i) The licensee has filed reports and paid applicable taxes to the board for at least two years immediately prior to the exemption request; and      (ii) there have been no late or missing reports or tax payments during the previous two years.      (iii) In order to remain exempt from the surety bond or assignment of savings account requirements, the licensee must continue to meet the tax reporting and payment requirements outlined in this title (outlined in WAC 314-19-015, RCW 66.24.206, RCW 66.24.210, RCW 66.24.270, RCW 66.24.290, and RCW 66.24.580).

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Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.
NEW SECTION
WAC 314-19-025
Are there any exceptions to the tax payments required in this chapter if the licensee primarily exports beer and/or wine?

Washington beer and/or wine distributors or importers who purchase fifty percent or more of their beer or wine for the purpose of exporting the product from the state may request that the board make simplified arrangements for reporting and payment of tax.

     (1) The licensee must make a written request for such arrangement to the board's financial division.

     (2) The board will make such arrangements on an individual basis for the purpose of simplifying the reporting and accounting requirements.

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(1) How to claim a tax credit	(2) How to claim a tax refund
(a) On the next monthly report, show the amount of product for which a tax credit is due in the appropriate section(s) of the form.      (b) Deduct the total credit from the total amount due on this report.	(a) A licensee may request a refund, rather than claim a credit, if no tax is due on the next required report.      (b) On the next monthly report, the licensee must show the amount of product for which a tax refund is due in the appropriate section(s) of the form.      (c) The board will not issue a refund check until the total amount to be refunded accumulates to at least ten dollars.

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(1) The additional beer taxes imposed under RCW 66.24.290 (3)(a) do not apply to the first sixty thousand barrels of beer sold by a brewery in Washington each fiscal year, if:

     (a) the beer is produced in the United States; and

     (b) the producing brewery meets the qualifications of 26 U.S.C. Sec. 5051 (a)(2).

     (2) In order to qualify for this exemption, the Washington brewer or the out-of-state beer certificate of approval holder must provide the board a copy of a Bureau of Alcohol, Tobacco and Firearms acknowledged copy of their filing "Notice of Brewer to Pay Reduced Rate of Tax" for the calendar year (as required under 27 C.F.R. Sec. 25.167).

     (3) The tax exemption will not apply until the first day of the second month following the month the notice is received (for example, if the notice is received by the Board on January 10, the tax exemption will start on March 1).

     (4) How will the distributor know what tax rate to pay for each brewery's products?

     (a) The board will provide distributors a list of breweries that qualify for the reduced tax rate; and

     (b) The qualifying brewery is responsible to inform the distributors when product sold to distributors exceeds the first sixty thousand barrels exempted from the additional tax.

     (c) Once a qualifying brewery's sales to distributors exceeds sixty thousand barrels, the distributors must begin paying the full tax rate on their next monthly tax report.

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(1) RCW 66.24.210(4) imposes an additional tax on fortified wine. RCW 66.04.010(37) defines "fortified wine" as wine that has an alcohol content greater than fourteen percent of alcohol by volume, and outlines exceptions for when wine can be over fourteen percent alcohol by volume and not be considered "fortified."

     (2) In order to not pay the additional tax on fortified wine that falls under one of the exceptions in RCW 66.04.010(34), a manufacturer, importer, or distributor must file an affidavit of exception on a form prescribed by the board.

     (a) The form must be submitted to the board's licensing and regulation division.

     (b) The board will only exempt payments owed and/or submitted after the affidavit is on file with the board. Tax payments owed and/or submitted prior to the board receiving the affidavit will not be adjusted.

     (c) The licensee who files the affidavit is responsible for the information it contains. Any affidavit which the board finds to contain false information may result in suspension of label and product approval for the wine products that are the subject of the affidavit, for not less than one year.

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(1) A licensed brewer holding a proper retail license, pursuant to chapter 66.24 RCW, may sell beer of its own production at retail on the brewery premises.((: Provided, That beer so sold at retail shall be subject to the tax and penalty for late payment, if any, as imposed by RCW 66.24.290, and to reporting and bonding requirements as prescribed in RCW 66.28.010 and WAC 314-20-010.))

     (2) In selling beer at retail, as provided in subsection (1) of this regulation, a brewer shall conduct such operation in conformity with the statutes and regulations applicable to holders of such beer retailers' licenses.      The brewer shall maintain records of such retail operation separate from other brewery records.

     (3) Upon written authorization of the board, pursuant to RCW 66.04.011, beer of a licensed brewer's own production may be consumed in designated parks and picnic areas adjacent to and held by the same ownership as the licensed brewer.

     (4) A licensed brewer or a lessee of a licensed brewer operating a spirit, beer and wine restaurant, licensed pursuant to RCW 66.28.010, shall conduct such operation in conformity with the statutes and regulations which apply to holders of such spirit, beer and wine restaurant licenses.

     (5) A brewer may serve its own beer and beer not of its own production without charge on the brewery premises, as authorized by RCW 66.28.040.      ((Such beer served without charge as provided herein is not subject to the tax imposed by RCW 66.24.290.))

     (6) No retail license or fee is required for the holder of a brewer's license to serve beer without charge on the brewery premises as set forth in subsection (5) of this regulation.      Before exercising this privilege, however, such brewer shall obtain approval of the proposed service area and facilities from the board.      Such brewer shall maintain a separate record of all beer so served.

     (7) A brewery is required to obtain the appropriate retail license to sell beer, wine, or spirits on the brewery premises that is not of its own production.

[Statutory Authority: RCW 66.08.030, 15.88.030, 19.126.020, 66.04.010, 66.08.180, 66.16.100, 66.20.010, 66.20.300, 66.20.310, 66.24.150, 66.24.170, 66.24.185, 66.24.200, 66.24.206, 66.24.210, 66.24.230, 66.24.240, 66.24.244, 66.24.250, 66.24.375, 66.24.380, 66.24.395, 66.24.400, 66.24.420, 66.24.425, 66.24.440, 66.24.450, 66.24.455, 66.24.495, 66.24.540, 66.28.010, 66.28.040, 66.28.050, 66.28.170, 66.28.180, 66.28.190, 66.28.200, 66.28.310, 66.44.190, 66.44.310, 66.98.060 and 82.08.150.      98-18-097, § 314-20-015, filed 9/2/98, effective 10/3/98.      Statutory Authority: RCW 66.08.030.      93-11-028, § 314-20-015, filed 5/10/93, effective 6/10/93.      Statutory Authority: RCW 66.08.030 and 66.98.070.      81-22-026 (Order 85, Resolution No. 94), § 314-20-015, filed 10/28/81; Order 61, § 314-20-015, filed 12/6/77; Order 40, § 314-20-015, Rule 37.5, filed 8/21/75.]

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.
AMENDATORY SECTION(Amending Order 85, filed 10/28/81)

WAC 314-20-160
Import((er))ation of foreign beer -- ((Certificate)) of approval required -- Reports -- Payment of tax.

Beer manufactured outside of the United States may be imported by a beer importer or distributor, but only under the following conditions:

     (1) ((The beer importer must be the holder of a certificate of approval, and shall furnish the bond required by WAC 314-20-010.

     (2) The beer importer importing such beer shall be at all times solely responsible for the payment of any and all taxes due the state of Washington on account of such beer.))      Such beer shall be imported and delivered directly to either the warehouse of the importer or distributor or to some other warehouse previously designated by the importer or distributor and approved by the board.

     (((3) On or before the twentieth day of the month following such importation the importer (certificate of approval holder) shall report such importation to the board, setting forth the quantity, brand, type, and package sizes of such beer and shall pay to the board the tax due thereon as provided in WAC 314-20-010.

     (4))) (2) All matters pertaining to the importation, transportation, storage, payment of taxes and keeping of records, and all other matters pertaining to the importation of beer manufactured outside the United States shall be subject at all times to such orders, rules and regulations as the board may from time to time prescribe, and the board reserves the right to make orders applicable to individual and particular cases in addition to general orders, rules and regulations applicable generally.

[Statutory Authority: RCW 66.08.030 and 66.98.070.      81-22-026 (Order 85, Resolution No. 94), § 314-20-160, filed 10/28/81; Order 14, § 314-20-160, filed 12/1/70, effective 1/1/71; Rule 55, filed 6/13/63.]

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.
AMENDATORY SECTION(Amending Rule 56, filed 6/13/63)

WAC 314-20-170
Holders of certificates of approval.

Each brewer holding a certificate of approval may ship beer only to licensed beer importers or distributors.      ((In those cases where the beer importer orders beer for export and requests that such beer be stamped with beer "in transit" stamps, the beer may be shipped, provided the appropriate beer "in transit" stamps are properly affixed to the packages or containers, subject to the exception as provided in WAC 314-20-040(1).))      As ((a part of the reports)) required by RCW 66.24.270 (sec. 23-F of the Washington State Liquor Act) and by the written agreement embodied in the application for certificate of approval, ((and at the time of filing monthly report with the board)) each brewer holding a certificate of approval shall ((pay the tax on behalf of the beer importer on all shipments of beer to such importers during the preceding calendar month, other than beer shipped with "in transit" stamps affixed, and shall make report as follows)) file the report(s) required by WAC 314-19-015.

     (((1) Such report shall show the quantity of beer sold or delivered to each licensed beer importer during the preceding month, together with the number, type and size of the packages or containers, respectively, and the date and invoice number of each shipment of such beer;.

     (2) a statement showing the respective amount of "in transit" stamps affixed to the packages or containers; and

     (3) a)) All reports shall be made upon forms prescribed, and furnished by the Washington state liquor control board.

[Rule 56, filed 6/13/63.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.
AMENDATORY SECTION(Amending WSR 98-18-097, filed 9/2/98, effective 10/3/98)

WAC 314-24-120
Import((er))ation of foreign wine -- United States wineries -- ((Certificate of approval required -- ))Monthly reports -- Records.

(1) Foreign wine.      Wine manufactured outside of the United States may be imported by a wine importer or distributor under the following conditions:

     (a) ((The wine importer must be the holder of a certificate of approval.

     (b))) The wine importer (((certificate of approval holder))) or distributor importing such wine must obtain label approval in accordance with WAC 314-24-040.      Such wine shall be imported and delivered directly to either the warehouse of the importer (((certificate of approval holder))) or distributor or to some other warehouse previously designated by the importer or distributor and approved by the board.

     (((c) On or before the twentieth day of the month following such importation the importer (certificate of approval holder) shall report such importation to the board upon forms prescribed and furnished by the board.

     (d))) (b) All matters pertaining to the importation, transportation, storage, keeping of records, and all other matters pertaining to the importation of wine manufactured outside the United States shall be subject at all times to such orders, rules and regulations as the board may from time to time prescribe, and the board reserves the right to make orders applicable to individual and particular cases in addition to general orders, rules and regulations applicable generally.

     (((e) Any wine importer (certificate of approval holder) holding a wine distributor's license should refer to WAC 314-24-110 for requirements on surety bond and payment of wine tax.))

     (2) Holders of certificate of approval -- United States wineries, located outside of Washington state.      Each winery holding a certificate of approval may ship wine to licensed wine importers and/or distributors only.      As required by section 10, chapter 21, Laws of 1969 ex. sess., and by the written agreement embodied in the application for certificate of approval, each winery holding a certificate of approval shall((, on or before the twentieth day of each month, furnish to the board a report of such shipments)) file the report(s) required by WAC 314-19-015.

     (((a) Such report shall show the quantity of wine sold or delivered to each licensed wine importer during the preceding month, together with such other information as the board may require.

     (b) All reports shall be made upon forms prescribed and furnished by the Washington state liquor control board.

     (3) Failure to make such a report at the time and in the manner as prescribed will be sufficient cause for the board to forthwith suspend or revoke the certificate of the certificate of approval holder.))

[Statutory Authority: RCW 66.08.030, 15.88.030, 19.126.020, 66.04.010, 66.08.180, 66.16.100, 66.20.010, 66.20.300, 66.20.310, 66.24.150, 66.24.170, 66.24.185, 66.24.200, 66.24.206, 66.24.210, 66.24.230, 66.24.240, 66.24.244, 66.24.250, 66.24.375, 66.24.380, 66.24.395, 66.24.400, 66.24.420, 66.24.425, 66.24.440, 66.24.450, 66.24.455, 66.24.495, 66.24.540, 66.28.010, 66.28.040, 66.28.050, 66.28.170, 66.28.180, 66.28.190, 66.28.200, 66.28.310, 66.44.190, 66.44.310, 66.98.060 and 82.08.150.      98-18-097, § 314-24-120, filed 9/2/98, effective 10/3/98.      Statutory Authority: RCW 66.08.030 and 66.98.070.      82-04-035 (Order 95, Resolution No. 104), § 314-24-120, filed 1/28/82; 81-22-026 (Order 85, Resolution No. 94), § 314-24-120, filed 10/28/81; Order 26, § 314-24-120, filed 8/14/73; Order 5, § 314-24-120, filed 8/7/69, effective 9/8/69; Rule 71, filed 6/13/63.]

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.
AMENDATORY SECTION(Amending WSR 98-18-097, filed 9/2/98, effective 10/3/98)

WAC 314-24-160
Domestic wineries -- Retail sales of wine on winery premises -- Wine served without charge on premises -- Spirit, beer and wine restaurant operation.

(1) A domestic winery holding a proper retail license, pursuant to chapter 66.24 RCW, may sell wine of its own production at retail on the winery premises((: Provided, That wine so sold at retail shall be subject to the tax imposed by RCW 66.24.210, and to reporting and bonding requirements as prescribed by RCW 66.28.010 and WAC 314-24-110 (Rule 69))).

     (2) In selling wine of its own production at retail on its premises as provided in subsection (1) of this regulation, a domestic winery shall conduct such operation in conformity with the statutes and regulations which apply to holders of such wine retailers' licenses.      The winery shall maintain records of its retail operation separate from other winery operation records.

     (3) Upon written authorization of the board, pursuant to RCW 66.04.011, wine of a domestic winery's own production and/or liquor products other than wine of a licensee's own production may be consumed in designated parks and picnic areas adjacent to and held by the same ownership as the domestic winery.

     (4) A domestic winery or a lessee of a licensed domestic winery operating a spirit, beer and wine restaurant, licensed pursuant to RCW 66.28.010, shall conduct such operation in conformity with the statutes and regulations which apply to holders of such spirit, beer and wine restaurant licenses.

     (5) A domestic winery may serve its own wine and wine not of its own production without charge on the winery premises as authorized by RCW 66.28.040.      ((Such wine served without charge as provided herein is not subject to the tax imposed by RCW 66.24.210.))

     (6) No retail license or fee is required for the holder of a domestic winery license to serve wine without charge on the winery premises as set forth in subsection (5) of this regulation.      Before exercising this privilege, however, such winery shall obtain approval of the proposed service area and facilities.      Such winery shall maintain a separate record of all wine so served.

     (7) A winery is required to obtain the appropriate retail license to sell beer, wine, or spirits on the winery premises that is not of its own production.

[Statutory Authority: RCW 66.08.030, 15.88.030, 19.126.020, 66.04.010, 66.08.180, 66.16.100, 66.20.010, 66.20.300, 66.20.310, 66.24.150, 66.24.170, 66.24.185, 66.24.200, 66.24.206, 66.24.210, 66.24.230, 66.24.240, 66.24.244, 66.24.250, 66.24.375, 66.24.380, 66.24.395, 66.24.400, 66.24.420, 66.24.425, 66.24.440, 66.24.450, 66.24.455, 66.24.495, 66.24.540, 66.28.010, 66.28.040, 66.28.050, 66.28.170, 66.28.180, 66.28.190, 66.28.200, 66.28.310, 66.44.190, 66.44.310, 66.98.060 and 82.08.150.      98-18-097, § 314-24-160, filed 9/2/98, effective 10/3/98.      Statutory Authority: RCW 66.08.030.      93-11-028, § 314-24-160, filed 5/10/93, effective 6/10/93; 86-12-023 (Order 190, Resolution No. 199), § 314-24-160, filed 5/28/86; Order 61, § 314-24-160, filed 12/6/77; Order 40, § 314-24-160, filed 8/21/75; Order 5, § 314-24-160, filed 8/7/69, effective 9/8/69; Rule 76, filed 6/13/63.]

     The following sections of the Washington Administrative Code are repealed:

WAC 314-16-130	In transit stamps.
WAC 314-20-010	Brewers -- Importers -- Distributors -- Monthly reports -- Tax refund procedures -- Bond requirements -- Payment of tax.
WAC 314-20-040	Beer in transit stamps -- General.
WAC 314-20-060	Beer distributors and importers -- Reports -- Stamps.
WAC 314-20-150	Beer importers -- Responsibility -- Taxes -- Stamps.
WAC 314-20-180	Partial beer tax exemption.
WAC 314-24-095	Fortified wine -- Exception to definition when affidavit on file.
WAC 314-24-110	Domestic wineries, wine distributors, wine importers -- Monthly reports -- Bonds required -- Payment of tax.
WAC 314-26-010	Procedures for tax refunds.

© Washington State Code Reviser's Office