Washington breweries just avoided a steep tax increase that’s expected to resurface
Washington’s breweries dodged a financial bullet during this year’s legislative session — one that is likely to return during next year’s session.
While a bill seeking to raise the overall tax rate on small breweries across Washington did not pass this year, it’s likely to resurface next January in Olympia.
House Bill 2079 “would nearly double the beer excise tax rate for most breweries operating in the state,” according to a news release from the Washington Brewers Guild. “The bill would raise the overall tax rate by 100% on small breweries producing less than 60,000 barrels annually.”
“HB 2079 ultimately did not pass this year, which was a relief to our over 400 craft breweries in the state. However, it will be back next legislative session,” Daniel Olson, the executive director of the Washington Brewers Guild, told The Herald.
“This bill is a direct threat to Washington’s small, independent breweries,” Olson said in the news release. “It imposes a massive tax increase on businesses that are already facing rising costs, harmful tariffs, shifting consumer habits, and slow post-pandemic recovery. This proposal punishes local producers and threatens jobs across the state.”
“Margins are already tight. Increased taxes harm our desire to do business in Washington. WA State continues to make it very difficult for small businesses to thrive. We employ our neighbors and people in our direct communities. We are a hub for social gatherings and run on tight margins as all restaurants do,” District Brewing owner Mark Shintaffer told The Herald.
District Brewing is a member of the Washington Brewers Guild and has locations in Lynden, Ferndale and Mount Vernon, as well as a new location planned in Oak Harbor.
“Price increases are felt quickly and put a strain on regular folks enjoying their community hangouts while watching their household budgets,” Shintaffer said. “The only avenue we have to chase the added cost of doing business is to raise our prices on either beer or food or both. Neither is conducive to happy customers.”
“Our last option would always be staff reductions because we rely on our fabulous staff to make our customers’ experience perfect,” Shintaffer said.
Bellingham Chamber of Commerce President Guy Occhiogrosso also sounded the alarm over the tax proposal.
“There are multiple ways to look at this impact,” Occhiogrosso told The Herald. “First, it simply increases the costs to our local breweries. Secondly, it impacts the competitiveness of our local producers versus other out of state/national producers. Thirdly, for those who are also restaurants, this would decrease an already thin margin.”
“Couple all of this with what appears to be an increase in other state taxes, the additional $1/hr increase in our local wages, and overall economic uncertainty, it would be incredibly taxing on our small businesses,” Occhiogrosso said.
“HB 2079 doesn’t just raise taxes on breweries — it raises costs for consumers and threatens the broader ecosystem that supports Washington’s craft beer industry,” Olson said in the news release. “From local farmers and suppliers to taproom staff and food vendors, the impact of this proposal would ripple far beyond brewery walls. By driving up production costs, HB 2079 will lead to higher prices at the tap and on store shelves — hurting not only small businesses, but the communities and customers that support them.”
“The Washington Brewers Guild urges lawmakers to reject HB 2079 and work toward fair, sustainable tax policy that supports small business and creates jobs,” the news release states.
The bill was sponsored by Democrat Reps. Lauren Davis and Joe Fitzgibbon.
Before the bill is proposed again at the next legislative session, those wanting to provide feedback can submit comments to local legislators online at the state legislator website.
Other Whatcom County breweries that are members of the Washington Brewers Guild include Beach Cat Brewing, Larrabee Lager Co., Boundary Bay Brewery, Aslan Brewing Co., Kulshan Brewing Company and North Fork Brewery.
This story was originally published May 13, 2025 at 5:00 AM.
