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Washington State Simplifies Tax Filing For Wineries

Washington now allows an optional annual filing of wine tax for wineries whose total sales into Washington are less than 6,000 gallons annually (roughly 2,500 cases). Wineries that exceed the 6,000 gallon limit, however, must continue to file monthly returns. This new allowance comes after the passage of SB 5259, a bill that passed in March and officially came into effect in June of this year. Bright yellow postcards were recently sent out by the Liquor Control Board (LCB) to qualifying wineries, along with instructions on how to change to the new frequency.

Senate and House Bill Reports on SB 5259 state that the passage of the bill is expected to benefit an estimated 300-400 wineries, simplify the reporting process and save time and effort. The state will benefit as well, as processing returns and payments for small dollar amounts can prove costly for the state.

How to Notify the State

Wineries who file the LIQ-774 (in-state wineries) and holders of the Certificate of Approval (COA) who file the LIQ-778 or the LIQ-870 (direct wine shippers) expecting to sell less than 6,000 gallons in Washington this year can sign up to file annually for the remainder of 2012 by emailing beerwinetaxes@liq.wa.gov. July 20 is the deadline for notifying the Liquor Board of intention to file annually for the remainder of the 2012 calendar year, so wineries should submit their requests to the LCB as soon as possible. In this email, specific account information should be included:

  • Name and phone number of the individual who files the returns
  • Trade name of the winery
  • COA number (or winery license number for in-state wineries)
  • Whether or not June 2012 sales have already been filed

The annual report for the remainder of 2012 may include sales from June through December. However, wineries that have already filed for the month of June will file the annual report beginning with July’s sales. If wineries would prefer to file annually beginning in January, this same process can be followed to change the filing frequency before the beginning of each new year.

Questions? Please contact the Washington State Liquor Control Board directly, or comment below.

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