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Introduction

Washington’s multifaceted wine industry - the second largest wine-producer in the nation – includes nearly 500 licensed wineries and over 350 grape growers.  In addition to selling wine, many other business activities fall under the wine industry umbrella, including farming, horticultural services, manufacturing, wholesaling, and retail sales, to name a few.   

The taxability of businesses in the wine industry is determined by the various activities they perform.  This guide is intended to provide general information regarding tax obligations and tax reporting instructions.   The information does not replace or substitute Washington rules (WAC) or laws (RCW), nor is it intended to be a statement of Department of Revenue policy.

This guide was created to help persons working in the wine industry to easily understand Washington State taxes that apply to their business activities.

The information in this guide is current at the time of publication.  Please remember that state laws change on a regular basis.  This guide will not reflect changes that occur after publication.  For more information or to get answers to specific questions, please contact the Department of Revenue.


Updated July 2012

Resources:

Contents:

Farming Part 1: Agricultural/Farming Activities
Since grape growing represents the vast majority of farming within the wine industry, the farming activities section of this guide is intended to address only farming and related work that apply to viticulture (grape cultivation). 

Manufacturing Part 2: Manufacturing Activities
The manufacturing activities section is intended to address the taxability of those manufacturing activities that may occur in the process of wine making.

Sales Part 3: Sales of Goods and Services
Part 3 discusses your tax obligations for retail and service activities.  In addition, it explains the sales tax sourcing requirements that took effect July 1, 2008, as part of Washington’s adoption of destination-based sales tax sourcing.