On March 9, 2025, Washington House Bill 2035 was introduced, aiming to amend the existing framework for spirits distributor license fees in the state. The bill proposes a tiered fee structure based on the duration of licensure, with the intent to streamline revenue collection from spirits sales while addressing concerns from both distributors and state regulators.

The key provisions of House Bill 2035 include a fee calculation that mandates licensees to pay 10 percent of their total monthly sales revenue from spirits for the first 27 months of licensure. This percentage decreases to 5 percent starting in the 28th month and continuing thereafter. The bill specifies that fees are applicable only to sales where the licensee was the first distributor to receive the spirits, whether manufactured in-state or sourced from out-of-state suppliers.

Notably, the bill seeks to clarify the obligations of retail licensees selling spirits for resale, requiring them to pay distributor license fees on resales of spirits that have not previously incurred a fee. The Washington State Liquor and Cannabis Board is tasked with establishing rules regarding the frequency and timing of these payments, which are to be reported quarterly.

The introduction of House Bill 2035 has sparked discussions among stakeholders, particularly regarding its potential economic implications. Proponents argue that the revised fee structure could enhance compliance and revenue predictability for the state, while critics express concerns about the financial burden it may impose on smaller distributors.

As the bill progresses through the legislative process, it is expected to undergo further scrutiny and possible amendments, reflecting the diverse interests of the spirits industry and regulatory bodies. The outcome of this bill could significantly impact the operational landscape for spirits distributors in Washington, shaping the future of liquor sales and regulation in the state.