Business buzzkill: WA craft brewers push back against proposed beer excise tax hike

SNOHOMISH COUNTY, Wash. — Breweries across Washington say a new proposal out of Olympia could be enough to make their businesses go flat. 

House Bill 2079 would essentially double the beer excise tax for breweries. The Washington Brewers Guild is sounding the alarm and warning it could force some brewers to raise prices or shut their doors for good.

“This bill is a direct threat to Washington’s small, independent breweries,” said Daniel Olson, executive director of the Washington Brewers Guild. “It imposes a massive tax increase on businesses that are already facing rising costs, harmful tariffs, shifting consumer habits, and slow post-pandemic recovery. This proposal punishes local producers and threatens jobs across the state.”

Salish Sea Brewing in Edmonds has been part of the Snohomish County community for more than a decade. The brewery prides itself on being a gathering place for family and friends.

“We’re not just businesses, we’re employers, we’re event sponsors and we’re community gathering spaces,” said Erika Barnett, co-owner of Salish Sea Brewing.

Barnett said the proposed beer excise tax increase would only harm breweries who are already operating on thin margins.

“Taxing us out of existence isn’t going to solve the budget issue,” she said. “It’s going to erase the heart of the communities that make us thrive across the state. I really wish that government would learn to live within its means, families and small businesses have to do that everyday.”

At Barley Pop Brewing in Snohomish, owner Addison Lippert shares similar concerns.

 “It’s definitely going to be a big increase on our bottom line,” he said. 

Lippert said the bill could flatline the momentum he’s worked hard to build.

“Been here since November of 2024, this is our first brick and mortar, before that we were a business running out of my garage.”

Here’s a breakdown of what the tax increase would look like: 

Smaller breweries that produce under 60,000 barrels a year currently pay about $4.78 in excise tax per barrel. Under the new proposal, that would nearly double to $9.51. Larger breweries producing more than 60,000 barrels a year would see their excise tax rise from $8.08 to $16.16 per barrel.

“We are basically bleeding dry,” Lippert said. “Like we can only afford so much of a loss before it’s like most people in the industry have to shut down.”

Brewers warn that if this passes, the cost won’t just stay in the brewhouse, customers will be the ones picking up the tab.

“Everyone is going to feel the pinch,” Barnett said. “And it may be enough to cause people to decide they can’t afford to go out or have that second beer.”

The bill is still in committee, and brewers say they’re keeping a close watch on what happens next in Olympia. Lawmakers have until April 27 to finalize the state budget.