Spirits sales: Off-premises licensees

Spirits retailers – grocery stores, etc.

Selling spirits in the original container for off-premises consumption.

How taxes apply to the sale of spirits

Spirits sales are subject to Washington taxes administered by the Department of Revenue.

Spirits taxes (RCW 82.08.150)

Sales to the general public

Off-premises licensees must collect and remit the spirits taxes on all sales of spirits in their original container to the general public as follows:

• Spirits sales tax at the rate of 20.5 percent of the selling price.
• Spirits liter tax at the rate of $3.7708 per liter.

Sales to on-premises licensees

(Restaurants, bars, taverns, etc., selling spirits for on-premises consumption by the drink)

Off-premises licensees must collect and remit the spirits taxes on all sales of spirits in their original container to on-premises licensees as follows:

• Spirits sales tax at the rate of 13.7 percent of the selling price.
• Spirits liter tax at the rate of $2.4408 per liter.

Sales to non-residents

Spirits sold to non-residents do not qualify for exemption from the spirits taxes even if the purchaser qualifies for an exemption from the general sales tax. (RCW 82.08.0273)

Sales in Indian country

Sales of spirits delivered in Indian country to tribal businesses or enrolled member/citizens are exempt from spirits taxes. See sales involving tribes.

Business and Occupation (B&O) tax

Wholesaling B&O Tax

Off-premises licensees must report wholesaling B&O tax on all sales of spirits to on-premises licensees.

Retailing B&O Tax

Off-premises licensees must report retailing B&O tax on all sales of spirits to the general public.

Retail sales tax

The general retail sales tax does not apply on sales of spirits in their original containers. Off-premises licensees selling spirits to the general public must report these sales under the Retail Sales Tax classification (gross Retail Sales must match gross Retailing B&O) and then take a “Sales of Spirits” deduction.

Licensing fees

Off-premises licensees may also be liable for licensing fees based on gross revenues. These fees are administered and payable to the Washington State Liquor and Cannabis Board (LCB). 

If you have questions regarding licensing or fees, please call LCB’s Customer Service Team at 360-664-1600 and choose Option 1 at the prompt.

Documentation required for the sale of spirits

When making spirits sales, off-premises licensees must be able to document that the proper spirit taxes, if any, have been collected. For more information on these documentation requirements, see documenting spirits sales.