MYNORTHWEST NEWS

Leg. considering bills to lower taxes on spirits-based canned cocktails

Jan 14, 2023, 9:36 AM

canned cocktail...

Close-up of discounted cans and cases of packaged cocktails on Safeway store shelves December 31, 2020. (Photo by Smith Collection/Gado/Getty Images)

(Photo by Smith Collection/Gado/Getty Images)

If you’ve been to a summer barbecue in the last few years, chances are, there were canned cocktails there.

Seltzer drinks such as White Claw, Truly, Mike’s Hard Lemonade and others are a popular alternative to traditional cocktails because they tend to have a lower alcohol content and fewer calories.

Dry January could have long-term health benefits to kick off 2023

“These are low-proof, ready-to-drink beverages that come in a can. They’re typically a lower alcohol content — typically below 7%,” said Aaron Pickus, a spokesperson for the Association of Washington Spirits and Wine Distributors.

However, even if the different brands of canned cocktails all have a similarly low alcohol content, they are not all taxed the same. If you are drinking a canned cocktail made with hard liquor, you are going to pay much higher taxes than if that drink was a beer or wine seltzer.

“They look the same, they are a similar experience — people want a lower-ABV (alcohol by volume), lower-calorie-type product,” Pickus said. “But some of them are taxed a lot higher … Depending on your preference as a consumer — if you prefer a beer-based drink, a wine-based drink, or a spirits-based drink — you’re going to be taxed significantly differently.”

Pickus said that spirits-based canned cocktails are taxed approximately 100 times higher than beer-based ones, and more than 20 times higher than those that are wine-based.

“The tax rate on a spirits-based drink in Washington is $24 a gallon,” Pickus said. “For a beer- or malt-based beverage, it’s only 26 cents a gallon.”

For a wine-based drink, you will pay 86 cents per gallon.

That is why Pickus, along with a group of residents and business owners, has worked with legislators to write a bill to bring down the taxes on spirits-based canned cocktails.

House Bill 1344 and its companion bill, Senate Bill 5375 — both of which are bipartisan — would lower the tax on canned cocktails made with hard liquor to $2.50 per gallon, about 10 times higher than the tax on beer seltzers.

“We’re not looking to make it the same, but just to close the gap,” Pickus said.

This would apply to canned cocktails that are 7% alcohol or lower.

Other states like Idaho have already rewritten the liquor laws in a similar manner.

The reason for the difference in taxation between beer, wine, and liquor seltzers is simple — a bottle of liquor is taxed at a higher rate in Washington than a bottle of wine or beer, because its alcohol content is higher.

However, this tax structure stays in place for canned cocktails, even if the alcohol content in a vodka-based canned cocktail is the same or less than that of a wine seltzer.

Pickus believes it simply has to do with the laws being written before the seltzer craze.

“What we’ve seen is that there is, in recent years, this new type of product that is of a lower alcohol content,” Pickus said. “And this wasn’t necessarily anticipated when the tax code was being set up.”

Follow Nicole Jennings on Twitter or email her here

MyNorthwest News

shooting seattle...

James Lynch

Triple shooting at party in Seattle short-term rental under investigation

Seattle police are investigating a triple shooting that happened early Monday morning at a party in a short-term rental home in lower Capitol Hill.

9 hours ago

A person types on an illuminated computer keyboard. (Photo: Sean Gallup, Getty Images)...

MyNorthwest Staff

‘Trying to steal every last cent’: Final defendant convicted in $6.8M COVID-19 fraud scheme

The final defendant of a fraud scheme was convicted of submitting fraudulent applications that sought more than $6.8 million in COVID-19 benefits.

9 hours ago

Rainier Beach shooting arrest...

Jillian Raftery

A ride home could have been the difference between life and death in Rainier Beach shooting, documents reveal

The family of a Rainier Beach High School student is preparing to sue the school district over his murder at a bus stop after class.

9 hours ago

cats tacoma...

Julia Dallas

‘This is strange’: 23 more cats rescued from abandoned Tacoma sailboat

Twenty-three more cats were rescued from an abandoned sailboat in Tacoma — bringing the total to 54.

10 hours ago

bellevue road closures...

MyNorthwest Staff

Drivers beware: Road closures hit I-405 in Bellevue this week

Drivers heading through Bellevue this week will want to plan ahead.

11 hours ago

I-5...

James Lynch

Police: Woman killed on I‑5 after jumping from moving vehicle in Federal Way

A 33-year-old Seattle woman was killed on I-5 early Monday morning.

11 hours ago

Leg. considering bills to lower taxes on spirits-based canned cocktails