The Washington BEER tax – why is this important to you?
What’s all this about a BEER TAX, and why should we care?
Well, for one thing, it would directly affect Flying Bike’s bottom line, and
ability to grow and thrive – that’s your brewery we’re talking about!
In summary: Back in 2010, a new temporary beer tax was enacted (with no public input) that affected brewers of 60,000 barrels (the lower margin of what defines a Microbrewery) or more, that sold beer in Washington state. This affected large out of state brewers (think Anheuser-Busch, et al) and Redhook. This tax was planned to sunset on June 30th of this year.
Now, with fiscal challenges continuing for the state, the Governor Inslee and State Legislature are considering not only extending this tax, but also modifying it to include smaller brewers that sell beer in the state (ie: under the 60K barrel threshold).
Currently, there is a proposal issued by Reuven Carlyle, the Representative from the 36th Legislative District (approximately Ballard, Queen Anne, Greenwood, Magnolia) and Chair of the Finance Committee, which deals with matters of taxation. His proposal would increase taxes on craft beer from about ~$0.154 / gallon to ~$0.304 / gallon, effectively doubling the excise tax on small breweries. The same proposal suggests cutting in half the same taxes placed on large breweries. Isn’t it ironic that this proposal is championed by the Representative from the district with Washington’s greatest recent explosion of craft breweries?
The net effect of this taxation on Washington-brewed Craft Beers
is that our local beers would become more expensive,
giving beer from other states an increased competitive advantage!
Washington’s beer taxes are already comparatively high. Oregon (which we all know produces some amazing craft beer) currently pays only $0.08 / gallon. And Oregon recently overtook Washington as the #1 craft beer producing state...
Many local Craft beer advocates have covered this controversy quite eloquently, such as the Washington Beer Blog, Dick Cantwell of Elysian, and the WA Brewers Guild They’re worth giving a read – these are not just entrepreneurs and industry folk trying to preserve their margins; these are passionate employers and taxpaying companies, the majority of which did not even exist a couple years ago!
(There’s also a nice write up in Saturday’s Seattle Times on this, too.)
We agree that the state needs to raise funds to properly pay for Education, and State owned infrastructure that is in disrepair, but we are of the opinion that this is a wholly regressive way to do it. Not only are Craft brewers singled out, but the effect on the industry (which employs, purchases, and primarily sells locally) would be devastating. Especially that segment of the industry that are small businesses, the backbone of any thriving local economy…
We strongly encourage you to write your legislator, and support your local breweries as much as you can in this effort to dissuade this ill conceived budget hack. Here’s a handy link to a template letter for you to use. You can even write to the Governor, to express your dismay that he included this provision in his budget (but ultimately he does not make budgets - the state legislature does).
This is not just about keeping the cost of your favorite pint lower – it’s about preserving and encouraging a small but thriving industry that does nothing but contribute positively to our economy and culture.
Please, take the time to write or call your representative, today!
Don't know who your rep is? Don’t know their address and phone number? Here's a legislative district map for you to reference.
(Here is another letter template for you to use.)
Thank you, and let your voice be heard!! Cheers!!
