Washington State’s “50 cent per gallon tax” and what it means to you

The state of Washington has long been a bastion of craft breweries and craft drinkers. Brewers, fans, and the government alike support each other as they strive to overtake the market share of the large, watered-down cans. But now there is a disturbance in the force. A disturbance proposed by Washington Governor Jay Inslee: the 50 cent per gallon tax.

I am going to warn you that this is Washington-centric, but is important for all craft lovers. Why? Because, it could happen to you, so please read through this., Washington State’s “50 cent per gallon tax” and what it means to you

MyNorthwest.com breaks down how the Washington beer industry supports the government: The business of growing grains and hops, brewing, bottling, distribution and importing accounts for more than 42,000 jobs in Washington. A key ingredient in beer is hops and Washington is the top producer of hops in the nation. “It’s an important industry for all the brewers and beer importers that need those hops,” said Chris Thorne, a spokesman and vice president with the Beer Institute. “Washington state plays an integral part in agriculture for the entire brewing industry.”

I would love to sit and break this down for you – because you deserve to know how a government currently receives tax revenue from an industry that brings in approximately $4.3 billion – but I really believe that smarter people have already done it. People like Washington Beer Blog and the analysis that they did on Monday.

It breaks down some of the biggest questions that everyone is asking: What is the tax, how does it affect the state’s breweries, and how much will it cost the consumer? Their opinion…is simply genius:

“I think this tax will be devastating, especially for new breweries, and would-be-breweries. It will seriously affect their ability to recoup the massive cost of startup. Beer is already a small-margin game and breweries are already paying their fair share of taxes. I refuse to see it as anything but a new tax. Breweries that are not paying the tax now will suddenly have to pay this tax. How is that anything but new? You can call it an increase if you want, but I see it as a new tax. It is drastic. It’s like raising the state sales tax to 30 percent with the stroke of a pen. Can you imagine them trying to do that?”

PLEASE, PLEASE, PLEASE read their analysis and contact your legislators if you disagree with the state’s proposed tax. Visit endthebeertaxnow.com for more indepth information on the tax (and some possibly biased opinions).

Again, this may be a Washington state issue for right now, but this could send shockwaves through the nation’s beer scene. If it can happen here, it can happen literally anywhere.

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