House Bill 3197 would create Oregon’s first ever state grocery and restaurant sales tax at 8% on those buying beer, wine and cider.
SALEM, Ore. — On Wednesday, April 2, the Joint Committee on Addiction and Community Safety Response held a hearing on Rep. Tawna Sanchez’s amended House Bill 3197, creating Oregon’s first ever state grocery and restaurant sales tax, which would increase prices on legal-age drinkers in Oregon by 8%. Lawmakers overwhelmingly heard from constituents opposed to such sales tax.
The Oregon Beverage Alliance released the following statement:
“With the highest cost increases in generations and no end in sight, a new 8% sales tax on beer, wine and cider would only make it harder for those of us trying to make our hard-earned dollars stretch. This massive sales tax harms Oregonians who just want to grab a drink with a coworker after work, take mom out for mimosas with brunch or the sports enthusiast buying a 6-pack for a watch party with friends,” said the Oregon Beverage Alliance.
“Lawmakers should not be raising prices through a regressive sales tax on constituents when costs are already at record highs. That message should have been heard loud and clear today. Oregonians said, ‘Don’t Tax My Drink!’”
Last year, Oregon brewers, winemakers and cidermakers served on a taskforce to examine alcohol taxes. The taskforce declined to recommend a tax increase and 87.5% of the public comments submitted opposed tax increases. Instead, the taskforce found the Oregon Health Authority lacks accountability and fails to track spending or results. Oregon Health Authority said it cannot account for $72 million in substance use disorder spending last biennium.
Proponents of HB 3197 stated the additional revenue is needed for youth prevention, yet youth drinking is at an all-time low, a trend that’s occurred for more than two decades as existing prevention programs are working. Alcohol taxes are already the third largest source of revenue for the state, yet only 3% goes to funding drug addiction and mental health. The legislature sends the rest to the general fund. Lawmakers have an obligation to hold agencies accountable for waste and utilize existing revenue first if more youth drug addiction and recovery services are truly needed before increasing taxes on constituents.
Oregon is home to more than 300 breweries, 900 wineries, 1,300 vineyards, 70 cideries, 100 distilleries, 73 distributors and 10,000 restaurants, creating hundreds of thousands of good-paying jobs and more than $17 billion in economic activity for the state. These numbers are down with record closures – more than 100 breweries, wineries, cideries and tasting rooms in just the past two years.
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About the Oregon Beverage Alliance
The Oregon Beverage Alliance is made up of local brewers, winemakers, cidermakers, distillers and their supply and hospitality partners creating hundreds of thousands of jobs and generating $17 billion of economic activity for Oregon annually. Learn more: www.DontTaxMyDrink.org
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