Lena Savoie
In Washington State, there are two types of taxes on spirits: a spirits sales tax and a spirits liter tax. The spirits liter tax is a tax on the sales of spirits in their original container and is based on the volume sold. The tax rate for consumers is $3.7708 per liter, while the rate for on-premises retailers such as restaurants and bars is $2.4408 per liter. This tax is combined with the spirits sales tax, which is based on the selling price of spirits and is typically 20.5% for consumers and 13.7% for on-premises retailers. These taxes apply to any beverage containing alcohol obtained through distillation, including wines with more than 24% alcohol by volume.
| Characteristics | Values |
|---|---|
| What is taxed | Spirits (any beverage containing alcohol that is obtained by distillation, including wines with more than 24% alcohol by volume) |
| Tax rate for consumers | $3.7708 per liter |
| Tax rate for on-premises retailers (restaurants, bars, etc.) | $2.4408 per liter |
| Spirits sales tax rate paid by the general public | 20.5% |
| Spirits sales tax rate paid by on-premises retailers (restaurants, bars, etc.) on their purchases from distributors, distillers, etc. | 13.7% |
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What You'll Learn
Washington Liquor and Cannabis Board (LCB)
In Washington State, the Liquor and Cannabis Board (LCB) is responsible for regulating and overseeing the sale and consumption of alcohol and cannabis products. The LCB has the authority to approve or deny license applications for businesses wishing to sell these controlled substances.
When it comes to alcohol, specifically spirits or hard liquor, Washington imposes two types of taxes: a spirits sales tax and a spirits liter tax. The spirits sales tax is a tax on the selling price of spirits and is set at 20.5% for the general public. On-premises retailers, such as restaurants and bars, pay a lower rate of 13.7% on their purchases from distributors and distillers.
The spirits liter tax, on the other hand, is a tax based on the volume of spirits being sold. The tax rate for the general public is $3.7708 per liter, while on-premises retailers pay a reduced rate of $2.4408 per liter. This tax applies to any beverage containing alcohol obtained by distillation, including wines with more than 24% alcohol by volume.
The spirits liter tax is remitted to the Washington Department of Revenue, which is responsible for collecting and managing these taxes. Businesses that sell spirits are required to collect the spirits liter tax from their customers and remit it to the Department of Revenue on a monthly basis through their excise tax return. The taxes can be paid electronically using the My DOR system, and businesses have various payment options, including electronic funds transfer, e-check, and credit card.
The spirits liter tax is separate from the spirits sales tax, and they can be combined into one "Spirits Taxes" amount on price lists or sales invoices. In-state craft distillers can sell directly to the general public, but there are daily volume limits per person for off-premise consumption. It's important to note that advertised prices are considered exclusive of spirits taxes unless explicitly stated otherwise.
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Spirits sales tax
In Washington State, spirits are taxed in two ways: a sales tax and a liter tax. Spirits, in this case, refer to beverages containing alcohol obtained by distillation, including wines with more than 24% alcohol by volume.
The spirits sales tax is based on the selling price of spirits in their original packaging. The rate is 20.5% for the general public and 13.7% for on-premises retailers such as restaurants and bars. This means that when purchasing spirits, the public pays 20.5% of the listed price in taxes, while restaurants and bars pay 13.7%.
The spirits liter tax, on the other hand, is based on the volume of spirits being sold in the original package. The rate for the general public is $3.7708 per liter, while for on-premises retailers, it is $2.4408 per liter. So, for every liter of spirits purchased, the public pays an additional tax of $3.7708, and restaurants and bars pay $2.4408.
These taxes are separate and can be combined into one "Spirits Taxes" amount. For example, if a restaurant purchases a liter of spirits with a listed price of $10, they would pay a total of $12.4408 in spirits taxes ($1.37 in sales tax and $2.4408 in liter tax). The spirits taxes must be reported on the monthly tax returns using the Washington Department of Revenue's online e-filing system.
It is worth noting that in-state craft distillers can sell to the general public, with a limit of 2 liters per person per day for off-premise consumption, and are subject to these taxes. Additionally, purchases of spirits by licensees, such as off-premises distributors, spirits manufacturers, or importers, are exempt from spirits taxes. However, the purchaser must provide documentation to purchase at the lower rate or be exempt from spirits taxes.
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Liter tax rate for on-premises retailers
In Washington state, the liter tax rate for on-premises retailers, such as restaurants and bars, is $2.4408 per liter. This rate applies to purchases from distributors and distillers and is separate from the sales tax.
The spirits liter tax is a tax on the sales of spirits in their original container and is based on the volume sold. The term "spirits" refers to any beverage containing alcohol obtained through distillation, including wines with more than 24% alcohol by volume.
The spirits liter tax is one of two types of spirits taxes in Washington state, the other being the spirits sales tax. The sales tax is based on the selling price of spirits in their original package, while the liter tax is based on the volume of spirits being sold.
On-premises retailers are required to collect the spirits liter tax from their customers and remit it to the Washington Department of Revenue on their monthly excise tax returns. These returns must be filed electronically using the department's online e-filing system.
It is important to note that advertised prices or shelf prices are not typically considered to include spirits taxes unless they clearly state the amount of tax included. On-premises licensees, such as restaurants and bars, pay lower spirits tax rates when purchasing spirits.
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Taxes on wine
In Washington State, the term "spirits" is defined as any beverage containing alcohol that is obtained by distillation, including wines with more than 24% alcohol by volume. There are two types of taxes on spirits in Washington: a spirits sales tax and a spirits liter tax.
The spirits sales tax is based on the selling price of spirits in their original package. The rate paid by the general public is 20.5%, while the rate paid by on-premises retailers such as restaurants and bars on their purchases from distributors and distillers is 13.7%.
The spirits liter tax, on the other hand, is based on the volume of spirits being sold in the original package. The rate paid by the general public is $3.7708 per liter, while the rate for on-premises retailers such as restaurants and bars is $2.4408 per liter.
For spirits sold in the original packaging to the general public and on-premises licensees, the seller must separately state the spirits taxes. This can be done on a price list or a sales invoice provided to customers. The spirits sales tax and the spirits liter tax can be combined into one "Spirits Taxes" amount. However, simply using the term "tax included" will not suffice for the requirement to itemize the spirits taxes.
In-state craft distillers can sell to the general public, with a limit of up to 2 liters per person per day for off-premises consumption. They are subject to both the spirits sales tax of 20.5% and the spirits liter tax of $3.7708 per liter.
Businesses that owe spirits taxes to the department must report those taxes on their monthly tax returns using the department's online e-filing system. The spirits sales tax and spirits liter tax are reported in the "Other & Quantity" section of the return. Payment options include electronic funds transfer, e-check, and credit card.
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Spirits taxes for businesses
In Washington state, there are two types of spirits taxes: a spirits sales tax and a spirits liter tax. The former is a tax on the selling price of spirits in their original package, while the latter is a tax on the volume of spirits sold in the original container.
Spirits Sales Tax
The spirits sales tax rate varies depending on whether the spirits are being sold to the general public or to on-premises licensees such as restaurants and bars. The rate paid by the general public is 20.5%, while the rate paid by on-premises licensees is 13.7%. This lower rate applies to purchases from distributors, distillers, or the Washington Liquor and Cannabis Board (LCB).
Spirits Liter Tax
The spirits liter tax rate also varies depending on the type of purchaser. The rate paid by the general public is $3.7708 per liter, while the rate paid by on-premises licensees is $2.4408 per liter. This tax applies to the volume of spirits being sold in the original package and is collected by the Washington Department of Revenue.
Reporting and Payment
Businesses that owe spirits taxes are required to report and pay these taxes on a monthly basis using the Washington Department of Revenue's online e-filing system. The spirits sales tax and spirits liter tax are reported in the "Other & Quantity" section of the return on My DOR. Payment options include electronic funds transfer, e-check, and credit card.
Other Taxes
In addition to the spirits sales tax and spirits liter tax, other taxes may apply to the manufacture and/or sale of spirits in Washington state. These include the manufacturing/retailing business and occupation tax (B&O) and the Multiple Activities Tax Credit (MATC).
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Frequently asked questions
The tax rate for consumers is $3.7708 per liter.
The tax rate for on-premises retailers such as restaurants and bars is $2.4408 per liter.
The spirits sales tax is based on the selling price of spirits in their original package, while the spirits liter tax is based on the volume of spirits being sold in the original package.
