Washington State Liquor Control Board - History

History

Alcohol prohibition was repealed by Washington Initiative 61 in 1932, and from 1933 to 2012, the WSLCB was the sole distributor of all liqueurs and spirits in the state. In addition, they were also the primary retailer: the state operated 167 stores, while 163 stores were operated by private businesses who contracted with the state for a commission on the sales. These contract stores were generally located in either smaller cities or more remote and rural areas, while the state stores were typically located in larger, more populated areas. Because the state was the sole distributor of all spirits, uniform pricing was set so that the price of any given product was the same from store to store no matter how rural or populated the area was.

Historically, off-premise Sunday sales of spirits were banned, and all liquor stores were closed. Consumers still had the option of purchasing beer or wine from grocery stores or on-premise spirits from bars and restaurants. In 2005, the state began allowing off-premise spirits sales in select stores on Sundays from 12pm to 5pm.

On the November 8, 2011 election, voters passed Initiative 1183, which brought several changes to the liquor distribution and retailing system. The most significant of these changes were the end to the state monopoly on liquor sales and distribution. On June 1, 2012, Washington completed its transition to private liquor sales. Under 1183, spirits may only be sold in premises of at least 10,000 sq ft, generally including grocery stores, warehouse clubs, department stores, and some larger specialty shops. Exceptions to the 10,000 sq ft rule are granted for any former state or contract store that has chosen to remain open under private ownership, and for establishments that are in a "trade area" where no building exists that meets the 10,000 sq ft requirement. The WSLCB has not yet defined "trade area".

Under the state-run system, the shelf price included all taxes. Under the private system, as implemented by 1183, all spirits are to be taxed at 20.5% on the shelf price in addition to a flat spirits liter tax of $3.7708/liter. Many retailers no longer include these taxes in the shelf price, which has led to some sticker shock and confusion at the register. For instance, a 1.75l bottle of whiskey with a shelf price of $15.99 will have $3.28 in sales tax and $6.60 in liter taxes added at the register, bringing the total cost to $25.87.