Tapped Out

You might be paying significantly more for your pint next year. 

House Bill 2079, introduced by Representative Lauren Davis (D–District 32), would raise the tax on beer from $4.78 to $9.56 per barrel for most breweries. The bill also proposes doubling taxes on wine from 1 cent to 2 cents per liter and increasing taxes on fortified wine from 23.44 cents to 46.88 cents per liter.

Rep. Davis, the bill’s prime sponsor, defends the legislation primarily as a public health measure.

“There is a direct connection between the price of regulated substances and consumption,” Davis says. “It changes consumption patterns in young people and people with alcohol use disorder. There’s even a reduction in cirrhosis of the liver and suicide deaths correlated with the price of alcohol.”

State Rep. Lauren Davis.

Photo courtesy of Lauren Davis

Davis, who has worked in substance use disorder prevention since 2012, acknowledges the bill also comes at a time when the state faces budget constraints — something she believes creates “more potential tailwinds” for such legislation.

However, the Washington Brewers Guild has mobilized against the proposal, arguing it would be devastating for the state’s breweries.

“For a brewery producing 10,000 barrels a year, which is around the median range in Washington, you’re paying about $47,000 in excise tax,” says Daniel Olson, executive director of the Washington Brewers Guild. “If this bill passes, that jumps to $95,000. That’s quite a large increase for a business to absorb, particularly in the brewing industry, where we’re operating on razor-thin margins.”

The Washington Brewers Guild launched a grassroots campaign in response to the bill.

Image courtesy of Washington Brewers Guild

Olson says the Guild was surprised by both the timing and the lack of consultation regarding the proposal, which was introduced just days before the legislative session is scheduled to end on April 27.

“We would have loved to have more conversations with the prime sponsor about this piece of legislation,” Olsen says. “Instead, we just saw it drop one day and had to react from there.”

Most of the new revenue would go to the state’s general fund, with portions allocated to counties and municipalities. The legislation includes an emergency clause, allowing it to take effect on July 1, 2025, if passed.

Rep. Davis says she’s willing to discuss adjustments that might address industry concerns, particularly for smaller producers. “Are there certain considerations related to certain types of businesses where it might make sense to have a differential tax rate? I’d certainly be open to those types of conversations,” she says. 

Despite introducing the bill, Davis acknowledges it’s unlikely to advance this session, as it isn’t part of the negotiated revenue package between the House and Senate. She hopes it will spark future conversations about alcohol taxes, noting that the last major increase came during the Great Recession.

The Brewers Guild remains concerned about the precedent and has organized a grassroots campaign encouraging customers to contact their legislators in opposition to the bill.

“It’s going to raise prices across the board,” Olson warns. “Ultimately, the consumer is going to have to pay more for a pint, and we’re going to see some businesses disappear if this proposal passes.”