Washington Administrative Code › Title 314 - Liquor and Cannabis Board › Chapter 314-19 - Beer and wine tax reporting and payment requirements › Section 314-19-020 - What if a licensee doesn't report or pay the taxes due, or reports or pays late?

Current through Register Vol. 24-14, July 15, 2024
The board may take the following actions against a licensee or
				permit holder in order to collect any of the reports or taxes due that are
				outlined in this title.
(1)
Suspension or revo
(a) Failure to make a report and/or pay
cation of license
the taxes in the manner and dates outlined in
this chapter will be sufficient ground for the
board to suspend or revoke a liquor license,
wine shipper permit, or certificate of approval
(per
						RCW
						66.08.150,
						66.24.010,
						66.24.120,
66.24.206, 66.20.370, 66.20.380, and
66.24.270).
(b) The suspension will remain in effect until all missing
						reports and/or taxes have been filed with the board (see WAC
						314-19-010(1) 
						for the definition of "missing").
(2)
Penalties
A penalty of two percent per month will be assessed on any
						tax payments postmarked after the twentieth day of the month following the
						reporting period of the transactions (per the reporting requirements outlined
						in WAC 314-19-015,
						RCW
						66.24.290, and
						66.24.210 ). When the twentieth
						day of the month falls on a Saturday, Sunday, or a legal holiday, the filing
						must be postmarked by the U.S. Postal Service no later than the next postal
						business day. Absent a postmark, the date received at the
Washington state liquor control board, or
designee, will be used to determine if penalties are
to be assessed.
(3)
Surety bond requirements
(a)
What is a surety bond?
A "surety bond" is
						a type of insurance policy that guarantees beer and/or wine tax payment to the
						state. The surety bond must be:
(i) Executed by a surety company authorized to do business
						in the state of Washington;
(ii) On a form and in an amount acceptable to the board;
(iii) Payable to the Washington state liquor control
						board; and
(iv) Conditioned that the licensee will pay the taxes and
						penalties levied by
						RCW
						66.24.210 and/or 66.24.290.
(v) As an option to obtaining a surety bond, a licensee
						may create an assignment of savings account for the board in the same amount as
						required for a surety bond. Requests for this option must be submitted in
						writing to the board's financial division.
(b)
When will the board require a surety
						bond?
The board may require a surety bond from a Washington beer and/or
						wine distributor, domestic microbrewery, domestic brewery, public house,
						domestic winery, wine shipper, or a beer or wine certificate of approval holder
						that has a direct shipment privilege. If any of the following occur, the board
						may require the licensee or permit holder to obtain a surety bond or assignment
						of savings account, within twenty-one days after an administrative violation
						notice is issued:
(i) A report or tax payment is missing, as defined in WAC
						314-19-010, for two or more
						consecutive months; or
(ii) A report or tax payment is missing, as defined in WAC
						314-19-010, two or more times
						within a two year period.
(c)
What will happen if the licensee does not
						acquire the surety bond or savings account?
Failure to meet the bonding
						or savings account requirements outlined in subsections (a) and (b) of this
						rule may result in immediate suspension of license privileges until all missing
						reports are filed and late taxes have been paid and the surety bond is acquired
						or the savings account is established.
(d)
In what amount and for how long will the board
						require a surety bond?
The amount of a surety bond or savings account
						required by this chapter must be either $3,000, or the total of the highest
						four months' worth of tax liability for the previous twelve month period,
						whichever is greater.
(i) The licensee or permit holder must maintain the bond
						for at least two years. After the two year period the licensee or permit holder
						may request an exemption as outlined in subsection (f) of this rule.
(ii) Surety bond and savings account amounts may be
						reviewed annually and compared to the last twelve months' tax liability of the
						licensee. If the current bond or savings account amount does not meet the
						requirements outlined in this section, the licensee or permit holder will be
						required to increase the bond amount or amount on deposit within twenty-one
						days.
(e)
What action will the board take when a licensee
						or permit holder holds a surety bond and does not pay taxes due or pays
						late?
If a licensee or permit holder holds a surety bond or savings
						account, the board will immediately start the process to collect overdue taxes
						from the surety company or assigned account. If the exact amount of taxes due
						is not known due to missing reports, the board will estimate the taxes due
						based on previous production, receipts, and/or sales.
(f)
Can a licensee or permit holder request an
						exemption to the surety bond or savings account requirement?
A licensee
						or permit holder may make a written request to the board's financial division
						for an exemption from the surety bond or assignment of savings account
						requirements. The board will grant an exemption once the following criteria are
						met:
(i) The licensee or permit holder has filed reports and
						paid applicable taxes to the board for at least two years immediately prior to
						the exemption request; and
(ii) There have been no late or missing reports or tax
						payments during the previous two years.
(iii) In order to remain exempt from the surety bond or
						assignment of savings account requirements, the licensee must continue to meet
						the tax reporting and payment requirements outlined in this title (outlined in
						WA C 314-19-015,
						RCW
						66.24.206,
						66.24.210,
						66.24.270,
						66.24.290, and
						66.24.580 ).
Statutory Authority:
				  RCW
				  66.08.030. 12-24-091, § 314-19-020,
				  filed 12/5/12, effective 1/5/13. Statutory Authority:
				  RCW
				  66.08.030,
				  66.20.360 through
				  [66.20].380,66.20.390 , 66.24.170, 66.24.206, 66.24.210, 66.24.240,66.24.244 ,
				  66.24.270, 66.24.290, 66.28.170, 66.28.180, and42.56.270 . 07-02-076, §
				  314-19-020, filed 12/29/06, effective 1/29/07. Statutory Authority:
				  RCW
				  66.08.030,
				  66.24.206,
				  66.24.210,
				  66.24.230,
				  66.24.290,
				  66.24.305,
				  66.24.215, and
				  66.24.580. 04-24-007, §
				  314-19-020, filed 11/19/04, effective 12/20/04. Statutory Authority:
				  RCW
				  66.08.030,
				  66.24.210,
				  66.24.230,
				  66.24.290,
				  66.24.305,
				  66.24.270,
				  66.24.215,
				  66.24.580,
				  66.24.206. 00-17-065, §
				  314-19-020, filed 8/9/00, effective
				  9/9/00.