Engrossed Substitute Senate Bill 5368 creates a new, temporary statutory section directing the Washington State Institute for Public Policy (WSIPP) to study and report on Washington’s system of alcohol taxes and fees where the tax or fee amount is based on sales price, sales volume, or alcohol content. WSIPP must submit a final report to the relevant committees of the legislature by June 30, 2026, and the study provision expires July 1, 2026. The Liquor and Cannabis Board and the Department of Revenue are required to cooperate and provide data for the study. The required report must include the items listed in subsection (2)(a)–(f), including annual sales and tax/fee revenue data for the past five years for certain items, specified information covering 2008–2020 for specified elements in subsection (2)(f)(iv), and, to the extent practicable, estimated transition costs, estimated annual administration costs, and estimated tax revenue for a system in which rates are set solely by alcohol content. The report must also estimate the tax rates for spirits, beer, and wine that would be needed to maintain revenue neutrality under an alcohol-content-only tax system. The bill identifies WSIPP, the Liquor and Cannabis Board, the Department of Revenue, state producers (spirits, beer, wine, breweries, wineries, distilleries), other states and countries for comparison, and the legislature’s relevant committees as participants or data sources. The term “economic impact” is defined for the study to include the number and average wage of local jobs. This is a procedural change creating a new, time-limited study and reporting requirement (a new section) rather than a change to existing tax rates, tax law, penalties, or enforcement procedures. The document provided does not specify which legislative committees are the report recipients, does not anchor “past five years” to specific calendar years, does not list specific existing state taxes and fees by name, and does not include methodology, funding, or an RCW citation or chapter number.

If enacted, the law requires the Washington State Institute for Public Policy to produce a one-time report by June 30, 2026 that examines state taxes and fees tied to alcohol sales price, sales volume, or alcohol content. The report must include recent annual sales and tax revenue, historical information back to 2008 for certain items, comparisons with other jurisdictions, and estimates of transition and ongoing administration costs plus the tax rates for spirits, beer, and wine that would keep overall revenue neutral under a system based solely on alcohol content. The Liquor and Cannabis Board and the Department of Revenue must cooperate and provide data, and the study authority expires July 1, 2026. The most directly affected parties are WSIPP, which must allocate staff time and produce the study, and the Liquor and Cannabis Board and Department of Revenue, which must allocate staff and data to support it. Alcohol producers and sellers (spirits, beer, wine, breweries, wineries, distilleries) will be analyzed and could see their tax treatment changed if lawmakers act on the report. Key implementation details are unclear in the text provided: the specific legislative committees to receive the report, which exact calendar years are meant by “the past five years,” and whether additional funding or resources are provided to carry out the study.