Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Taxes Fees Liquor License Fees topic
No spam. Unsubscribe anytime.
Liquor license fee increases draw opposition from restaurants, grocers and small retailers
Summary
A staff briefing on second substitute Senate Bill 5786 outlined nearly universal increases to liquor license, permit and endorsement fees (many at 50%), estimated to raise about $9 million per year. Industry groups and small business owners testified the changes would be disproportionate for restaurants, grocery stores and small retailers.
House Appropriations staff briefed members on second substitute Senate Bill 57‑86, which would raise most liquor license, permit and endorsement fees (many by 50%) and adjust several other license categories by different amounts. The Liquor and Cannabis Board estimates the bill would raise about $9 million in general‑fund revenue annually and about $250,000 a year for UW and WSU alcohol research. The board also estimates one‑time IT costs around $165,000.
Why it matters: License fees affect a wide range of businesses — from small independent restaurants and craft distillers to large grocery chains and national retailers — and any change interacts with excise tax and other regulatory costs.
Testimony and concerns
Craft distillers: Jim Hedrick, representing Washington craft distillers, asked lawmakers to withhold action and instead conduct a study of fees so increases are grounded in findings; he warned that manufacturers pay multiple endorsements and fees across manufacturing, storage and distribution and that a blunt increase would disproportionately burden small producers.
Hospitality and restaurants: Shonda Wits of the Washington Hospitality Association testified in opposition, saying restaurants and hotels operate on thin margins and that fees are already high relative to large retailers. Several in‑room restaurateurs described the practical impacts on small operations.
Grocery and retail: Carolyn Logue of the Washington Food Industry Association and Crystal Leatherman of the Washington Retail Association urged more research and warned that grocery and food retailers face layered fees (including a license issuance fee tied to gross spirits receipts) and that a uniform 50% bump would be inequitable, particularly for small grocers under 10,000 square feet.
What happens next The committee concluded public testimony without taking a vote; industry groups asked lawmakers to consider a study and more targeted adjustments rather than blanket increases.
Ending Lawmakers will weigh projected revenue gains against industry concerns about competitiveness, equity across license classes and combined cost pressures on small businesses.
