Liquor in grocery stores part II

To read our first post on Initiative 1183, click here.

Even after June 1, 2012, the state will still collect revenue from the sale of each bottle of liquor through a liquor tax. This liquor tax is considered one of the state’s excise taxes. (Read past posts about other excise taxes for fuel and tobacco here.) The state law pertaining to the collection of liquor tax can be found in RCW 82.08.150. In 2011, The Washington State Liquor Control Board (WSLCB) reported that liquor taxes accounted for more than $425 million in revenue that went to the state and local governments for services. The WSLCB produces a report that shows how each county distributes your liquor dollars, click hereto check out how your county benefits. Thurston County received $2,193,132 from liquor tax last year alone.

So starting June 1^st, you’ll be able to walk into Costco and pickup your favorite bottle of spirits right? Maybe not. Like most initiatives in this state, implementation of them becomes extremely complicated. The Washington State Supreme Court heard arguments last week that, if ruled in favor of, would make Initiative 1183 unconstitutional. You can view the hearing here.

The group bringing up the lawsuit is the Washington Association for Substance Abuse and Violence Prevention, a Washington non-profit corporation. The claim of illegality is that Initiative 1183 dealt with more than one subject. Washington’s Constitution states in Article II, Sec. 19 that, “no bill shall embrace more than one subject, and that shall be expressed in the title.” The Association for Substance Abuse and Violence Prevention claims that, “I-1183 exploited the initiative process to serve the special interests of large retailers such as Costco, its biggest financial supporter. Upholding I-1183 would compromise the integrity of future initiatives and eviscerate the salutary purpose of Article II, [sect.] 19.”

The plaintiff also believes that Costco and the backers of I-1183 purposely misled the voters by disguising new taxes as fees, thus distracting citizens who would perhaps not have voted for the initiative if it were a “tax.” The state insists that there are taxes involved with I-1183, but no new taxes.

The hope is that the court will rule on the lawsuit by June 1, 2012—the same day Costco (and others) will begin selling liquor. Stay tuned to TVW and the State Supreme Court for the final ruling.