Washington State Tax Summary

[tipk99]

Hi all,

I've been doing planning and research and haven't found this anywhere else - I thought I'd post it for two reasons... one, to check to see if I'm right... and two, in case this summary is useful for someone else...

• In WA state - if I have an imaginary 750ml bottle of 80 proof spirit and I sell directly to a customer from my craft distillery with a shelf price of $30.... I pay $0 to the WSLCB, and $2.14 of Federal excise tax. So I actually only get $27.86 for that bottle.
  
• On top of the $30 shelf price the customer also pays $6.15 in Spirit Sales Tax (20.5% of sale price) and $2.83 in Liter Tax ($3.77 per liter). So the customer actually pays $38.98 out the door. I would collect these taxes and pay them to the state.
  

• If I were to sell that same bottle to a bar/restaurant, I would likely have to sell it to the bar for say $20 a bottle (Is that a fair reduction in sale price in your experience?). Out of that $20 I would pay a $2.00 WSLCB fee and the $2.14 Federal Excise tax. So I would only get $15.86 for that bottle.
  
• On top of the $20 shelf price, the bar would pay $2.74 in Spirit Sales Tax (13.7% of sale price) and $1.83 in liter tax ($2.44 per liter). So the bar actually pays $24.57 out the door. I would collect these taxes and pay them to the state.
  

• If I were to sell the same bottle to a liquor store/grocery store, I would likely have to sell it to the bar for say $20 a bottle (Is that a fair reduction in sale price in your experience?). Out of that $20 I would pay a $2.00 WSLCB fee and the $2.14 Federal Excise tax. So I would only get $15.86 for that bottle.
  
• On top of the $20 shelf price there are no taxes collected or paid.
  

• If I were to sell the same bottle to a distributor, I would likely have to sell it for say $13 a bottle (Is that a fair reduction in sale price in your experience?). Out of that $13 I would pay a $0.00 WSLCB fee and the $2.14 Federal Excise tax. So I would only get $10.86 for that bottle.
  
• On top of the $13 shelf price there are no taxes collected or paid.
  

Did I get that right? Am I missing anything? Any other fees or taxes or other craziness? Did my estimates of discounts for bars/liquor stores/distributors seem reasonable or am I off base? Was this helpful?

Are there any county or local fees that I don't know of (for whatever county or city you are in)?

Thanks!!

Tom

[stevenstone]

Hi Tom,

Yes, it looks like you have it right. See below for a graphic that the WA Dept. of Revenue posted.

http://dor.wa.gov/Do...gram1262012.pdf

Good luck with your venture,

Steven

[tipk99]

That graphic is great Steven, thank you.... Wish I had seen that a month ago!! It does say B&O taxes aren't included... I haven't included them in my analysis yet either... I just went and looked at the WA B&O page and it's also very confusing. Do you pay a different tax rate on each type of sale? Or do we fit into a retailing or manufacturing category? Thanks

Tom