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May 6, 2009
Change goes into effect August 1
OLYMPIA – The Washington State Liquor Control Board (WSLCB)
today voted to increase the markup on liquor to generate
approximately $80 million in revenue during the next two-year
budget cycle. The move raises the markup from the current 39.2
percent to 51.9 percent. Markup is a percentage of the cost of
product to the Board. The increase will go into effect August 1
and last through the end of the 2009-2011 Biennium.
This action will replace the $78.6 million that will be removed
from the Liquor Revolving Fund by the Legislature in Engrossed
Substitute House Bill 1244 to help close the state’s $9 billion
budget deficit.
The WSLCB is acting now to allow WSLCB staff time to prepare for
the changes and to ensure that liquor suppliers have time to
adjust their prices by August 1. Also, by increasing the markup
sooner rather than later, the markup is less than it would have
been if the WSLCB delayed the decision.
The increase does not apply to beer and wine products.
The Liquor Revolving Fund includes revenue from sales of
spirits, beer and wine liter taxes, license fees and other
related revenue sources. The fund covers WSLCB expenses and
funds essential state and local services such as health care and
education.
More expensive premium whiskey priced today at $41.95 would be
approximately $45.65 under the new formula. A value whiskey
priced today at $10.95 would be approximately $11.85 as of
August 1, 2009.
In Fiscal Year 2008, the WSLCB returned a record $322 million to
the state General Fund and other state and local government
accounts. For more information regarding the WSLCB and where
revenue from liquor sales goes, please visit the WSLCB Web site
at
www.liq.wa.gov.
Contact: Brian E. Smith, WSLCB Communications Director,
360-664-1774
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