FINAL BILL REPORT

SSB 5537

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

C 160 L 17

Synopsis as Enacted

Brief Description: Authorizing licensed spirits and wine distributors to sell spirits and wine products to their employees in certain circumstances.

Sponsors: Senate Committee on Commerce, Labor & Sports (originally sponsored by Senators King and Keiser).

Senate Committee on Commerce, Labor & Sports

House Committee on Commerce & Gaming

Background: Licensed Spirits Distributors. Licensed spirits retailers may sell spirits purchased from a variety of sources to spirits retailers that sell spirits for both on-premises and off-premises consumption. Spirits distributors must pay to the Liquor and Cannabis Board a spirits distributor license issuance fee of 5 percent, which is deposited into the Liquor Revolving Fund. Spirits sales to on-premises licensees are subject to a 13.7 percent sales tax and a per liter tax of $2.4408. Spirits sales to consumers also include a liquor sales tax of 20.5 percent and a per liter tax of $3.77.

Licensed Wine Distributors. Licensed wine distributors may sell wine purchased from a variety of sources to licensed wine retailers and other wine distributors. Although generally wholesale sales of wine are subject to a liter tax based on the gross proceeds of the sale, sales of beverages solely for immediate consumption at the seller's place of business are exempt from the liter tax. Retail sales of wine to consumers also include the applicable sales tax.

Summary: Licensed Spirits Distributors. Licensed spirits distributors may sell spirits directly to full-time employees of the spirits distributor if the spirits cannot reasonably be sold in the normal course of business, such as because of damage to the label on individual bottles, and are subject to the following requirements:

Licensed Wine Distributors. Licensed wine distributors may sell wine directly to full-time employees of the wine distributor if the wine cannot reasonably be sold in the normal course of business, such as because of damage to the label on individual bottles, and are subject to the following requirements:

Votes on Final Passage:

Senate

41

7

House

76

21

Effective:

July 23, 2017