Solera Winery Compliance Guide

Washington Winery Compliance & Reporting Guide (2026)

By Kevin Nesgoda, winemaker and founder of Solera ·

Scope first

Who this guide is for

This guide is written for a winery physically licensed in Washington as a Domestic Winery. It covers the recurring state and federal obligations most likely to touch production, cellar records, wholesale and retail wine movements, tasting rooms and finance.

Washington domestic winery

Start with the main guide below. Your central LCB wine report is the LIQ-774/777 WA Domestic Wine Summary Tax Report.1

Winery outside Washington

Do not assume LIQ-774 applies. Washington uses Wine Shipper and COA paths for out-of-state wineries; monthly forms differ. See the out-of-state DTC section.11

Municipal land use, building/fire approvals, employment law, environmental permits, food service and fact-specific tax issues are outside this guide except where noted. They can still apply to a particular winery.

Fast reference

The Washington winery reporting calendar

ObligationTypical cadenceDueImportant qualifier
LCB LIQ-774/777Monthly if taxable WA sales exceed 6,000 gal/year20th of following monthFile even for zero activity. E-file by 10:00 PM and complete payment/confirmation.1
LCB LIQ-774/777Annual only with LCB approval if at or below 6,000 galJanuary 20 following yearNew licensees seeking annual status must notify LCB within 30 days of license issuance.2
WA DOR excise tax returnDOR assigns monthly, quarterly or annualMonthly: 25th; quarterly: month-end after quarter; annual: April 15Use the current DOR calendar because holidays and assigned frequency control.8
TTB Form 5120.17Annual, quarterly or monthly depending on federal eligibilityGenerally 15th day after reporting periodFederal inventory/tax-return thresholds are separate from Washington's 6,000-gallon rule.13
TTB F 5000.24 excise tax returnAnnual, quarterly or semimonthly depending on federal eligibilityPer TTB's current calendarDo not infer tax-return frequency from Form 5120.17 alone.14
Step 1

Get the federal and Washington licenses in the right order

TTB says wine-premises operations cannot begin until federal qualification is approved, and TTB does not charge a federal application or maintenance fee. Washington's domestic-winery application rules require a copy of the approved federal producer/blender permit.124

  1. Qualify the wine premises with TTB. Use the federal application path appropriate to the winery's activities.
  2. Apply for the Washington liquor license through the state licensing process. LCB currently routes in-state liquor-license applications through Washington's Business Licensing Service.4
  3. Keep the approved premises and privileges aligned with actual operations. Material premise changes, added locations or other privileges can require prior approval.
Domestic Winery annual productionCurrent WA license feeAuthority
Under 250,000 liters/year$150RCW 66.24.170 and current LCB fee page3
250,000 liters/year or more$600RCW 66.24.170 and current LCB fee page3

A domestic winery may operate up to four additional locations under the privileges described in RCW 66.24.170. Servers who sell or serve alcohol for on-premise consumption, including samples, need the applicable Class 12 or Class 13 MAST permit.310

Step 2

File LIQ-774/777 on the cadence LCB has assigned

Washington domestic wineries are required to submit LIQ-774/777, WA Domestic Wine Summary Tax Report. Wineries with more than 6,000 gallons of total taxable Washington sales per calendar year file monthly, including months with no activity. Wineries at 6,000 gallons or less may file annually only after receiving LCB approval.1

Monthly filing

  • Report each month, including zero-activity months.
  • Due the 20th day of the following month.
  • For e-filing, submit by 10:00 PM on the due date, finish the payment transaction and receive a confirmation number.1
  • Late unpaid balances accrue a 2% penalty per month or fraction of a month under RCW 66.24.210.5

Annual filing

If the winery qualifies at 6,000 gallons or less and LCB approves annual reporting, the annual report is due January 20 of the following year. Under current WAC 314-19-015, a new licensee expecting to qualify must notify LCB within 30 days of license issuance to use annual reporting, and filing-frequency changes take effect only at the beginning of a calendar year.2

Current Washington wine-liter tax rates

The current domestic-winery instruction packet linked from LCB's winery reporting page lists the following rates. Because rates are high-volatility compliance data, confirm the live LIQ-774/777 instructions before filing.15

Product categoryCurrent wine tax rateWatch-out
Cider as defined by RCW 66.24.210$0.0814/literState definition requires apple/pear fermentation and 0.5% to 8.5% ABV.
Non-fortified wine$0.2292/literDo not classify solely from a generic federal category.
Fortified wine$0.4536/literWashington's fortified-wine definition has statutory exceptions.6
The part that breaks reconciliations

Know what belongs in Washington taxable wine activity

Current WAC 314-24 identifies specific domestic-winery dispositions that are subject to Washington wine tax and others that are not. This is a wine-tax classification table, not a statement about retail sales tax, B&O tax or federal tax.7

Disposition by a Washington domestic wineryWA wine tax?Practical note
Retail wine sold on licensed winery premises or an additional winery locationYesAlso review DOR retail sales tax and Retailing B&O treatment.
Wine sold directly to Washington retail licenseesYesKeep sales and shipping documents tied to the report period.
Samples furnished to retail licenseesYesDifferent from samples furnished to distributors.
Qualifying donations covered by the WAC reporting categoryYesDo not assume “donated” means tax-free.
Farmers-market wine salesYesRetail tax obligations can also apply.
Previously exported Washington wine returned to WA and used in a taxable categoryYesReturned exports have additional LCB source-record/reporting rules.
Wine sold or furnished as samples to a licensed distributorNoMaintain records that support the disposition.
Outgoing interplant transferNoTax can arise later if the receiving winery uses wine in a taxable category.
Direct export outside WashingtonNoRetain shipping documents proving export.
Complimentary tasting at the winery or additional winery locationNoThis is the state wine-tax treatment; MAST and service rules still apply.
Filing workflow

How to close and submit the LCB report

  1. Reconcile production, transfers and removals. Tie gallons/liters and disposition categories to source records before calculating tax.
  2. Prepare LIQ-774/777 for the correct license and reporting period. Do not combine separate licenses or permits into one report.2
  3. Log in to LCB's Beer and Wine Tax Reporting system. LCB's current filing instructions direct users to select “File Reports” and open the applicable reporting month.16
  4. Save pending, then submit the pending report. Choose the applicable submission/payment option. A zero-activity or zero-balance report still must be filed when monthly reporting applies.
  5. Confirm completion. For e-filed reports, LCB says submission is not complete until the payment transaction is finished and a confirmation number is received.1
  6. Archive the filed report, confirmation and reconciliation. Retain them with the supporting sales, shipping and production records for audit support.

Official LCB help: beerwinetaxes@lcb.wa.gov · (360) 664-1721. Confirm contact details on the LCB Tax and Fee Reporting page.

Audit readiness

Corrections and record retention

If a filed beer/wine report is wrong, LCB instructs licensees to submit a correction report for each affected reporting period. LCB currently says credits from correction reports are honored back two calendar years. The agency also states that its correction review does not prevent a later audit.17

Washington's winery record rule requires core sales, shipment and receipt records to be retained for at least three years. Computerized records are acceptable when there is an audit trail that can trace transactions to source documents and reconstruct the final totals.7

Federal TTB retention is similar but not identical. Under 27 CFR 24.300, prescribed wine records and source records generally must be kept for at least three years from the date of the record or the last entry, whichever is later, and TTB can require retention for up to three additional years.15

Separate state tax system

Washington Department of Revenue reporting is separate from LCB

Do not treat the LIQ-774/777 as the winery's only Washington tax return. DOR's wine-industry guidance states that retail wine sales to consumers are generally reported under Retailing B&O, and the winery collects retail sales tax. The local sales-tax rate depends on where the customer receives the product, so use DOR's current rate tools instead of hard-coding one statewide total rate.8

DOR assigns a filing frequency. Its current due-date guidance says monthly returns are generally due on the 25th of the following month, quarterly returns on the last day of the month following the quarter, and annual returns on April 15. Always use the current-year calendar and the frequency shown in the winery's DOR account.8

Federal layer

TTB operational reports and federal excise tax are their own cadence

A Washington winery's federal reporting obligations do not inherit Washington's state filing frequency. TTB's current eligibility framework for the Report of Wine Premises Operations, TTB F 5120.17, uses federal inventory and tax-return criteria.13

TTB F 5120.17 frequencyCurrent high-level eligibilityOperational report due
AnnualQualifying annual federal tax-return filer whose bulk + bottled wine inventory is not expected to exceed 20,000 gallons for any one month during the calendar yearGenerally by the 15th day after the annual period
QuarterlyQualifying quarterly federal tax-return filer whose bulk + bottled wine inventory is not expected to exceed 60,000 gallons for any one quarter during the calendar yearGenerally by the 15th day after the quarter
MonthlyWineries that do not qualify for annual or quarterly reportingGenerally by the 15th day after the month

Federal excise tax returns use a different eligibility test again. TTB currently provides annual filing for qualifying taxpayers expecting $1,000 or less in covered federal excise tax liability, quarterly filing for qualifying taxpayers expecting $50,000 or less, and semimonthly filing otherwise, with prior-year conditions and other rules. Use TTB's current due-date page for the exact period calendar rather than copying dates into a static compliance calendar.14

Product and tasting-room controls

Labels, alcohol service and nonalcoholic products

COLA and Washington label submission

WAC 314-24-040 requires applicable federal Certificate of Label Approval information to be submitted to LCB before wine is sold in Washington and provides a state tracking-label route for wines under 7% ABV. When a federal label change requires new federal approval, the corresponding Washington submission requirement follows the rule.7

MAST for on-premise alcohol service

People who sell or serve alcohol for on-premise consumption, including pouring samples, need a current Class 12 or Class 13 alcohol-server permit as applicable. This matters at the production winery and additional tasting locations.10

WSDA food-processor licensing

WSDA says a facility producing only alcoholic beverages is licensed through LCB and does not need a separate WSDA Food Processor License for that activity. If the winery also makes nonalcoholic or soft-drink-type products, WSDA food-processing licensing can apply to those products.18

Different license path

If your winery is outside Washington but ships to Washington consumers

Washington changed from reciprocity to a permit framework for out-of-state winery direct shipping. A U.S. winery licensed in its home state and federally qualified can use Washington's Wine Shipper permit; a winery already holding a Washington Wine Certificate of Approval uses the applicable direct-to-consumer endorsement. The Wine Shipper permit fee is currently $150; the consumer-shipping endorsement for a COA holder is no-fee.11

  • Wine Shipper and applicable COA holders report shipments monthly, including months with no sales.11
  • The current LCB beer/wine reporting guide identifies LIQ-870 for Wine Shipper to Consumer and LIQ-778 for Wine COA reporting.17
  • Out-of-state direct sellers must collect and remit Washington sales tax through DOR and pay applicable Washington wine tax to LCB.11
  • LCB's current direct-shipping guidance says the shipping container must state that it cannot be delivered to someone under 21 or to a person who appears intoxicated.11
Operating rhythm

A defensible winery compliance close

Close controlOwnerEvidence to retain
Freeze and review production-period transactionsWinemaking / cellarProduction ledger, additions, gains/losses, bottling and transfer records
Reconcile sales and wine movements by Washington tax categoryCompliance / financeInvoices, bills of lading, tasting/sampling logs, export and transfer records
Prepare and review LIQ-774/777ComplianceFiled report, calculation support, confirmation/payment evidence
Reconcile DOR return to consumer/wholesale salesFinanceDOR workpapers, sales-tax sourcing support, filed return
Prepare TTB F 5120.17 at the federally assigned cadenceWinemaking / complianceOperational report and supporting wine-premises ledger
Prepare federal excise tax return/payment at current TTB cadenceFinance / complianceF 5000.24, Pay.gov confirmation or other filing evidence
Archive immutable close packetComplianceExact reports, exports, workpapers, source records and approvals used for filing
Common failure points

Eight Washington winery compliance mistakes to prevent

  1. Confusing LCB's 6,000-gallon threshold with TTB reporting thresholds. They govern different filings.
  2. Skipping a zero-activity LCB month. Monthly filers still report zero activity.
  3. Assuming every winery at or below 6,000 gallons can automatically file annually. LCB approval is required.
  4. Classifying fortified wine only by ABV. Washington's statutory exceptions matter.
  5. Calling all free wine “non-taxable.” Retail-licensee samples and complimentary winery tastings receive different wine-tax treatment.
  6. Letting the LCB report stand in for DOR. Retail sales tax and B&O reporting are separate.
  7. Keeping only the filed form. The audit trail needs source records and the reconciliation that produced the filed totals.
  8. Using an out-of-state direct-ship form for a Washington domestic winery. The license and report path depends on where and how the winery is licensed.
2026 change watch

What Washington wineries should watch next

LCB tax-reporting system replacement: LCB says its new all-in-one Tax & Fee System is anticipated to launch in spring 2027. Portal screenshots and click paths are therefore high-volatility. Use LCB's current filing page for live instructions.19

Shared or leased liquor premises: 2SHB 1701 took effect June 11, 2026, and LCB has active rulemaking for leasing liquor premises as of this guide's verification date. Wineries structuring shared facilities should check the live rulemaking record before relying on a facility plan.20

Quick answers

Washington winery compliance FAQ

What report does a Washington domestic winery file with LCB?

LCB requires LIQ-774/777, the WA Domestic Wine Summary Tax Report. LIQ-777 covers sales to Washington wine distributors as part of the report set.1

When is a Washington winery's monthly LCB report due?

The 20th day of the month following the reporting month. Electronic reports must be submitted by 10:00 PM on the due date, with the payment transaction completed and confirmation received.1

Can a small Washington winery file LCB wine reports annually?

Yes, if total taxable Washington wine sales are 6,000 gallons or less and LCB approves annual filing. Annual reports are due January 20 following the reporting year.1

Does a monthly Washington winery file if there were no sales?

Yes. Current LCB guidance and WAC 314-19-015 require monthly reports even for periods with no activity when monthly filing applies.2

What is the late penalty on unpaid Washington wine tax?

RCW 66.24.210 provides a 2% penalty per month or fraction of a month for applicable late tax payments. LCB's current winery page also states that penalties accrue at 2% per month on unpaid balances.5

Is wine over 14% ABV always “fortified wine” for Washington wine tax?

No. Washington's definition has important exceptions, including certain naturally fermented wine over 14% without added spirits/brandy/alcohol and certain qualifying aged wine. Check RCW 66.04.010 before classifying a product.6

How long should a Washington winery keep LCB records?

Washington's winery rules generally require key transaction and shipping records for at least three years. Federal TTB retention is also generally three years but uses its own starting point and can be extended by TTB.715

Does filing LIQ-774/777 satisfy Washington DOR tax filing?

No. LCB wine-tax reporting and DOR excise-tax reporting are separate. Consumer wine sales generally involve Retailing B&O and retail sales tax reporting through DOR.8

Does Washington's 6,000-gallon threshold control TTB Form 5120.17 frequency?

No. TTB uses separate federal inventory and tax-return eligibility tests. Check TTB's current operational-report due-date guidance for the winery's federal cadence.13

What does an out-of-state winery use to ship DTC into Washington?

Washington uses a Wine Shipper permit for qualifying out-of-state U.S. wineries or a direct-to-consumer endorsement for a winery already holding a Washington Wine COA. Those paths report monthly and use different LCB forms from an in-state Domestic Winery.11

Definitions

Washington winery compliance terms

LCB / WSLCB
Washington State Liquor and Cannabis Board, the state alcohol licensing and wine-tax reporting agency.
LIQ-774/777
Washington's Domestic Wine Summary Tax Report set for a Washington domestic winery.
DOR
Washington State Department of Revenue, which administers B&O and retail sales tax reporting.
TTB
U.S. Alcohol and Tobacco Tax and Trade Bureau, the federal regulator for winery qualification, federal excise tax, operational reporting and applicable label approval.
F 5120.17
TTB Report of Wine Premises Operations.
COLA
Certificate of Label Approval issued by TTB when federal label approval applies.
MAST
Mandatory Alcohol Server Training for people who serve, sell or supervise alcohol service for on-premise consumption in Washington.
Verification record

Primary and authoritative sources

Material compliance claims in this guide were checked against current official sources on August 5, 2026. Near-claim citations above point to the source list below.

  1. Washington State Liquor and Cannabis Board. Winery tax reporting: LIQ-774/777, filing frequency, due dates and current instruction packet. Accessed Aug. 5, 2026.
  2. Washington State Legislature. WAC 314-19-015, beer and wine tax reports. Current rule accessed Aug. 5, 2026.
  3. Washington State Legislature / LCB. RCW 66.24.170, Domestic Winery license and current LCB non-retail license descriptions and fees. Accessed Aug. 5, 2026.
  4. Washington State Legislature / LCB. WAC Chapter 314-24, Domestic Wineries and Domestic Wine and LCB liquor-license application guidance. Accessed Aug. 5, 2026.
  5. Washington State Legislature. RCW 66.24.210, wine and cider taxes. Accessed Aug. 5, 2026.
  6. Washington State Legislature. RCW 66.04.010, definitions including table wine and fortified wine. Accessed Aug. 5, 2026.
  7. Washington State Legislature. WAC Chapter 314-24, current domestic-winery rules, including taxable dispositions, labels and records. Accessed Aug. 5, 2026.
  8. Washington State Department of Revenue. Wine sales to consumers, retail sales tax, and filing frequencies and due dates. Accessed Aug. 5, 2026.
  9. Washington State Department of Revenue. Wine-industry manufacturing activities. Accessed Aug. 5, 2026.
  10. Washington State Liquor and Cannabis Board. Selling Alcohol Responsibly / MAST. Accessed Aug. 5, 2026.
  11. Washington State Liquor and Cannabis Board. Direct Shipping Laws and Winery COA and Shipper to Consumer reporting. Accessed Aug. 5, 2026.
  12. Alcohol and Tobacco Tax and Trade Bureau. Wine permits and federal application process. Accessed Aug. 5, 2026.
  13. Alcohol and Tobacco Tax and Trade Bureau. Due dates for operational reports and Report of Wine Premises Operations. Accessed Aug. 5, 2026.
  14. Alcohol and Tobacco Tax and Trade Bureau. Due dates and eligibility for federal tax returns. Accessed Aug. 5, 2026.
  15. Electronic Code of Federal Regulations. 27 CFR 24.300, wine record retention. Accessed Aug. 5, 2026.
  16. Washington State Liquor and Cannabis Board. How to file tax reports online. Accessed Aug. 5, 2026.
  17. Washington State Liquor and Cannabis Board. Beer and Wine Tax Reporting Guide, including report-form matrix and correction instructions. Accessed Aug. 5, 2026.
  18. Washington State Department of Agriculture. Winery and Brewery food-processing licensing guidance. Accessed Aug. 5, 2026.
  19. Washington State Liquor and Cannabis Board. Tax and Fee Systems Replacement Project. Accessed Aug. 5, 2026.
  20. Washington State Liquor and Cannabis Board. Current Rulemaking Activity, including 2SHB 1701 leasing-liquor-premises rulemaking. Accessed Aug. 5, 2026.
  21. Washington State Wine Commission. 2024 Annual Report, confirming the $0.08/gallon winery assessment then in effect. Used as corroborating industry-agency context; current LCB instructions control filing. Accessed Aug. 5, 2026.
Editorial controls

Verification and update policy

Verification cutoff: August 5, 2026. Next scheduled review: November 5, 2026.

Rates, forms, filing portals, licensing fees and open rulemaking are treated as high-volatility. This guide intentionally links back to controlling agency pages so a winery can confirm live requirements at the point of filing.

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Disclaimer: This guide is for informational purposes only and is not legal, tax, or compliance advice. Verify all requirements with the relevant regulatory agency.