tipk99 Posted March 9, 2013 Share Posted March 9, 2013 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 Link to comment Share on other sites More sharing options...
stevenstone Posted March 10, 2013 Share Posted March 10, 2013 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 Link to comment Share on other sites More sharing options...
tipk99 Posted March 10, 2013 Author Share Posted March 10, 2013 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 Link to comment Share on other sites More sharing options...
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