Booze biz hit with 50% fee hike as WA Senate passes controversial bill by one vote

A bill that includes a whopping 50% hike on more than 40 liquor-related fees in Washington has earned the dubious honor of being the closest floor vote of the 2025 legislative session so far.

Second Substitute Senate Bill 5786 squeaked through the Senate on Thursday by the slimmest of margins—25 to 24—with five Democratic senators crossing party lines to join all Republicans in voting against it.

So, what does this bill actually do?

If you’re a bar, brewery, winery, nightclub, grocery store, hotel, or even a day spa that hands you a glass of wine while you’re getting a facial (yes, that’s a real permit), you’re about to pay more—sometimes a lot more—to keep pouring drinks.

This bill hikes up fees by 50% for dozens of license types, including those for distilleries, caterers, taverns, and even tasting rooms.

In plain terms: If you legally sell or serve alcohol in Washington, odds are your fees are going up, across the board.

A fiscal note attached to the bill estimates it’ll bring in more than $18 million over the next two years. And let’s be honest: those extra costs are probably getting passed right along to customers.

The application fee for retail licenses is going up 50%, too. On top of that, the Liquor and Cannabis Board (LCB) is now required to raise all license fees that were set by rule (not written into law) by that same 50%.

Why now?

Supporters say this is about keeping up with inflation. Most of these fees haven’t been updated since the late 20th century—some go all the way back to the 1980s. So while your rent, ramen, and everything else have gotten pricier, liquor license fees have been chilling in a time capsule.

Democrats, who control both the House and Senate, are also on the hunt for ways to close a budget gap. Other proposals in the mix would raise fees on hunting, fishing, and access to state parks.

But not everyone’s raising a glass.

Opponents argue the bill hits small businesses hardest, especially mom-and-pop distilleries and local bars already fighting to stay afloat amid inflation, supply chain drama, and the lingering effects of the pandemic. During committee hearings, critics slammed the bill for lacking a clear link between the higher fees and any additional services or benefits from the state.

A split decision—literally.

The bill stirred up serious division in both the Senate Labor and Commerce Committee and the Senate Ways and Means Committee, where lawmakers issued clashing reports and several slapped on a “Do Not Pass” or “No Recommendation” label.

The final Senate vote was just as tight—a razor-thin margin that shows how hotly contested this move really is.

Now the bill heads to the House, where it’ll need to move quickly if Democrats want it to help plug the budget hole before the session ends on April 27.

Matt Markovich is the KIRO Newsradio political analyst. Follow him on X. Read more of his stories here.

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