Oregon Proposes a 1900% Increase in Beer Tax
The brewers of Oregon are currently enjoying the 4th lowest beer tax in the nation, at $2.60 per 31-gallon barrel. However, a recently proposed bill aims to raise those taxes to $49.61 per barrel. This change would place Oregon at the top of the list for state beer taxes.
The taxation on malted beverages hasn’t changed in Oregon for 32 years. Currently, the state is battling with budgets and requires funding for alcoholism prevention and treatment programs. The bill explains that alcoholism and other substance abuse costs the state $4.15 billion in lost earnings, as well as $8 million in healthcare costs.
According to Representative Ben Cannon, consumers should expect a modest price increase of 15-cents on 12 ounce glasses, and 90-cents on six-packs of beer. However, brewers are warning that in order to keep price margins constant, the cost to distributors will increase, who will in-turn raise prices for consumers.
Prior versions of the bill had exemptions for breweries that produced under 200,000 barrels per year, the most recent version of the bill does not discriminate.
