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Bill

SB 5389

Restoring liquor sales revenue distributions to local governments.

2025-2026 Regular Session Introduced by Keith Wagoner and 1 co-sponsor

SB 5389 redirects Washington liquor tax revenues from the state to local governments to restore their municipal funding sources.

By resolution, reintroduced and retained in present status.
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WeVote Research Nonpartisan
Bill Summary · SB 5389

Legislative bill overview

SB 5389 restores liquor sales revenue distributions to local governments in Washington State. The bill addresses changes to how alcohol tax revenues are allocated between state and local entities, redirecting a portion of liquor-related revenue back to municipalities and counties.

Why is this important

Local governments depend on these revenue streams to fund essential services like law enforcement, public health, and infrastructure. Changes to liquor tax distribution directly impact municipal budgets and their ability to provide community services without raising property taxes or other local fees.

Potential points of contention

  • State budget implications: Money redistributed to local governments reduces state revenues available for education, healthcare, and other state-level programs
  • Definition of "restoration": Unclear whether this returns to previous distribution levels or implements a new formula, which affects actual fiscal impact
  • Timing and implementation: How quickly revenues shift to locals and whether there's a transition period that protects state programs from disruption

Compiled from official sources — confirm details with the bill’s official record.

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