Your Guide to Winery Compliance for Small Wineries in Washington State
Owning a winery in Washington state is a dream come true for many wine lovers and entrepreneurs. The state's rich soils, varied climates, and vibrant wine culture create an ideal environment for making great wines.
However, behind the beautiful vineyards and the joy of winemaking, there are many regulations that can seem overwhelming, especially for small wineries.
In this post, we'll break down the key compliance requirements that small wineries in Washington state must follow to run their business legally and successfully.
Licensing Requirements
Before you can start selling your wine, you need to get the right licenses to run your winery legally in Washington state. This usually means getting federal permits from the Alcohol and Tobacco Tax and Trade Bureau (TTB) and state licenses from the Washington State Liquor and Cannabis Board (WSLCB).
Both of these websites are a great starting point:
Washington State Liquor and Cannabis Board (WSLCB) Winery FAQs https://lcb.wa.gov/enforcement/winery-faq
Alcohol and Tobacco Tax and Trade Bureau Wine (TTB) FAQs https://www.ttb.gov/regulated-commodities/beverage-alcohol/wine/wine-faqs
Understanding and securing the necessary licenses is key to avoiding legal issues and ensuring your winery can operate smoothly and sell wine legally.
Labeling Regulations
A wine label is more than just a design—it's part of the story you tell with every bottle. However, small wineries need to follow strict rules to make sure their labels meet both state and federal laws. This includes showing the alcohol content, including health warnings, and using specific language and font sizes. Paying close attention to these details is essential for creating compliant wine labels in Washington state.
This page has some good information you need to know when it comes to labeling: https://lcb.wa.gov/enforcement/winery-faq
Wine Distribution
Getting your wine from the vineyard to the consumer involves understanding distribution rules in Washington state. Small wineries need to know how to sell wine directly to customers or work with distributors to reach more people, all while following state laws on wine distribution.
Tasting Room Compliance
Tasting rooms are the heart of many small wineries, giving visitors a chance to enjoy your wine right where it's made. However, running a tasting room means you need the right permits, follow zoning laws, and comply with health and safety standards. This ensures your visitors have a great experience while keeping everything legal and safe.
Here’s a breakdown of the permits you’ll need:
State Permits
Washington State Liquor and Cannabis Board (WSLCB):
Tasting Room Endorsement: Add this to your winery license.
Apply Online: Visit WSLCB Licensing Services to download and submit the Winery Application Packet with the required fees.
Local Permits
Zoning Permit: Contact your local city or county planning department to ensure your property is zoned for a tasting room.
Health Permit: If serving food, contact your local health department to comply with health regulations and obtain necessary permits.
Taxation
As with any business, taxation is a reality that small wineries in Washington state cannot escape. Understanding the tax implications of producing and selling wine, including excise and sales taxes, is essential to maintaining financial viability while complying with state and federal tax laws.
Here is a good resource for finding the excise tax rules in your state: https://wineinstitute.compliancerules.org/state-wine-excise-tax/
Taxes on wine can be very confusing, so it's best to get help from an accountant who specializes in wineries. They can make sure you're following all the rules and avoid any problems.
Winery Records
Keeping meticulous records is not only good business practice but also a legal requirement for small wineries in Washington state.
Think of it like keeping track of your receipts and bills at home, but for everything that happens at the winery.
This includes things like:
How many grapes you harvest and how much wine you make
Every bottle you sell, to whom, and for how much
Who you pay to work at the winery
The taxes you owe
Having this information organized makes things easier when the government checks to make sure the winery is following the rules. It also helps you run your business smoothly.
Health and Safety Regulations
Keeping everyone safe has to be a top priority for any winery in Washington. This means two things: protecting the people who work there and the environment around it.
Here's what that looks like:
Safety first for workers: Your winery needs a plan to prevent accidents and injuries. This includes training workers on how to use equipment safely and having clear rules about what's allowed.
Handling things carefully: Wineries use materials that can be dangerous, like cleaning chemicals. These need to be stored and disposed of properly to keep everyone safe.
Environmental Compliance
Washington wineries play a big role in shaping the state's beautiful wine country. But beyond making delicious wines, there's a responsibility to be good stewards of the environment. That's why Washington has regulations in place to ensure wineries minimize their environmental footprint. This includes:
Smart pesticide use: Wineries need to follow strict guidelines for applying pesticides and herbicides to avoid harming wildlife or contaminating water sources.
Water conservation: Wineries use a significant amount of water. Regulations encourage practices like drip irrigation and water recycling to minimize waste.
Responsible wastewater management: Wineries generate wastewater during cleaning and processing. Regulations ensure this wastewater is treated appropriately to prevent pollution.
Here are a few additional resources that may help:
Washington State Department of Ecology (Ecology): This is the primary agency responsible for environmental regulations in Washington. Their website has a search function where you can look for specific topics like "winery wastewater" or "pesticide use in vineyards."
Ecology's Winery General Permit: This permit outlines regulations for how wineries can discharge process wastewater: WA Winery General Permit.
Washington State Wine Commission: This organization supports the state's wine industry and may have resources or contacts who can help you understand environmental regulations.
Employee Regulations
Happy workers make a successful winery! In Washington, there are rules wineries need to follow to keep their employees safe, healthy, and motivated. This includes things like:
Fair pay: Wineries must pay their workers at least the minimum wage and follow overtime rules if someone works extra hours.
Safe work environment: The winery needs to have a plan to prevent accidents and injuries.
Following the law: There are rules about breaks, time off, and other things that wineries need to follow.
Here are a couple of resources to learn more about employee regulations for Washington wineries:
Washington State Department of Labor & Industries (L&I): This is the main government agency that oversees workplace safety and labor laws in Washington. Their website has a wealth of information, including a search function for specific topics like "minimum wage" or "overtime pay for wineries."
Washington Wine Institute (WWI): This organization represents wineries across the state and offers resources and guidance for winery owners, including information on employee regulations. You can find their website here. They also have a section dedicated to safety resources specifically for wineries: https://www.wwi.wine
Need more winery compliance help?
Feeling overwhelmed by winery regulations? No worries! Here's a roadmap to get you started:
Washington WSLCB Winery FAQs: This is a great first stop for questions specific to Washington state winery licensing and compliance (https://lcb.wa.gov/enforcement/winery-faq).
TTB Wine FAQs: This resource provides answers to frequently asked questions about federal regulations for wine production and sales (https://www.ttb.gov/regulated-commodities/beverage-alcohol/wine/wine-faqs).
Still confused?
If you have more questions about winery compliance, need help with licensing, or with your regular monthly and annual reporting, we're here to help.
You can schedule a call with our team members here at Northwest Wine Accounting and we'll connect you with our compliance expert.
Until next time!
