Posts Tagged ‘Tied House’

Washington State: Down the Rabbit Hole of the Tied-House Laws

by John Hinman 05.17.12

Washington, as most people now know, is making the switch from being a solely state-run spirits distribution and retail system to having a fully privatized system. Initiative I-1183, which WA voters approved in November 2011 and which becomes effective in June 2012, created a new category of WA off-sale retail licenses (grocery stores, liquor stores) that will be available to private enterprise. The state is also closing all state-run liquor stores.  In addition to retail off-sale privileges, this new license gives privately owned stores the right to sell wine and spirits to on-premises licensees (restaurants, bars) in WA.  Unfortunately, this resale privilege triggers the tied-house laws in other states (including CA) for any WA off-premises retailers who are licensed in more than one state because the new law requires that retailers selling spirits to other retailers for resale must also hold a federal basic wholesaler’s permit. We are always concerned… Read more