House Bill 3312 is an unprecedented tax increase that would devastate a key part of Oregon’s economy
PORTLAND, Ore. — An amendment to House Bill 3312 would increase taxes on Oregon’s beer and cider by 1200% and increase taxes on wine by more than 500%. Overall, 74% of Oregonians oppose increasing taxes on beer, wine, cider and spirits.
“Beer, wine, cider and spirits are an essential part of Oregon’s economy and identity. If the goal is to kill a key sector of our state’s economy and all the jobs that come with it, House Bill 3312 is a great start,” said the Oregon Beverage Alliance. “Oregon’s breweries, wineries, cideries, distilleries, restaurants, bars and hospitality sector are facing major challenges. Between inflation on the cost of ingredients, supply chain issues, employee shortages, natural disasters and a pandemic, these local businesses need the support of lawmakers and the public to survive. The last thing any local business needs are the tax increases proposed in House Bill 3312, which would increase taxes on beer and cider by 1200% and increase taxes on wine by more than 500%.”
Oregon is home to 400 breweries, 1,000 wineries, 1,400 vineyards, 70 cideries, 100 distilleries, 73 distributors and 10,000 restaurants, creating hundreds of thousands of good-paying jobs and more than $14 billion in economic activity for the state. With the highest cost increases in generations, tax increases would only make it harder for these local businesses to invest in hiring and expansion.
The proposed amendment to House Bill 3312 would increase the beer and cider tax from $2.60 a barrel to $33.60 per barrel. And wine taxes would increase from 67 cents to $4.42 per gallon. This would put Oregon among the highest taxes in the nation.
Oregon already has some of the highest alcohol prices in the country. And Oregon’s beer, wine, cider and spirits are the third largest source of revenue for the state.
Recently, the Oregon legislature significantly increased its investment in drug addiction recovery and treatment. Even before this increase, Oregon spent more on behavioral health than 75% of other states. That’s also before the passage of Measure 110, which added more than $300 million and the national opioid lawsuit settlement, which provides an additional $330 million to drug addiction and recovery spending.
“The Oregon legislature has greatly increased its investment in drug addiction recovery and treatment and admits the issue isn’t a lack of funding, but a lack of coordination and trained service providers,” said the Oregon Beverage Alliance. “According to Oregon’s Alcohol and Policy Commission the misuse of alcohol in the state is in line with the national average, yet we’re among the top in misuse of drugs, such as meth and opioid. Taxing beer, wine, cider and spirit producers out of business isn’t fair and doesn’t address the real problem, which is drug addiction. We stand ready and willing to work with lawmakers and stakeholders on these issues. Hundreds of millions of dollars are already available. We now need to work together to ensure these resources are deployed in a coordinated fashion on evidence-based treatments with accountability from providers.”
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. Learn more: www.DontTaxMyDrink.org