Washington winegrowers warn about proposed tax
A proposed WA wine tax hike could dramatically impact the state’s wineries. Find out what wine experts are saying about the proposal.
As the final days of the 2025 Washington state legislative session commences, the Washington Winegrowers Association (WWA) is warning the wine industry that a proposed bill would increase state wine excise taxes.
The recently introduced House Bill 2079 raises wine excise taxes by more than 10% per gallon and creates a 100% tax increase on distribution and direct to consumer sales, according to a news release by the Cashmere, Washington-based association.
“This dramatic increase in our tax rate would hurt local wineries and grape growers, consumers, and will devastate an already struggling industry. Putting additional costs to doing business like this tax increase, will only decrease sales and may actually reduce potential revenue,” the association said in the release. “Have your voice heard in Olympia and help us push back on this harmful wine tax proposal.”
The general additional tax would make Washington’s wine excise tax significantly higher than taxes in California and Oregon, Washington winegrape growers’s biggest competitor states. California’s tax is 20 cents a gallon with Oregon’s at 67 cents, according to the release.
“Increasing WA to .96/gallon would make us even less competitive than we are today,” the association said in the release.
Many wineries are dealing with the damage tariffs are doing to them, lower sales from fewer tourists visits and changes in consumer purchasing choices. The wineries cannot absorb additional taxes without risking jobs or operations, according to the release.
Washington wineries are facing international trade challenges, particularly the loss of Canadian market access due to retaliatory tariffs, which have taken $10 million in annual Washington wine sales from them and significantly harmed what was once Washington’s largest export market, according to the release
In partnership with the Washington Wine Institute, WWA provides a link for members to contact their state representatives. For more information, members can email josh@wwi.wine and connect with WWA at its website.
Founded in 1983, WWA supports the Washington wine industry by addressing industry needs through collaboration and partnerships.