As local business owners and residents, brewers care deeply about our communities. That’s why we invest and create so many jobs here in Central Oregon.
Prior to COVID-19, Oregon was home to 400 breweries creating 43,000 jobs, $2 billion in wages and $6.7 billion in economic activity for the state. Sadly, it’s estimated due to the pandemic, 10,000 of those beer-related jobs have been lost.
The last thing members of the Central Oregon Brewer’s Guild need are the unprecedented tax increase being considered by Salem politicians, which would kill our businesses and the jobs we create in the community.
House Bill 3296 would increase taxes on beer and cider by nearly 3,000% and increase taxes on wine by 1,700%, making Oregon the highest beer, wine, cider and spirits tax state in the nation. It would increase the beer and cider tax from $2.60 a barrel to $72.60 per barrel. And wine taxes would increase from 65 cents to $10.65 per gallon. These aren’t minor adjustments a business can simply absorb or pass along to the consumer.
While we make beer because we love it, we still need to make a living. A tax increase of this size would more than eat up profit margins, leaving many breweries no other choices but to fold, no longer sell beer in the state of Oregon or set prices at unsustainable, uncompetitive levels.
Oregon’s beer, wine, cider and spirits sectors are already the third largest source of revenue for the state — only behind income taxes and the state lottery. Yet for some reason, less than 1% of Oregon’s budget goes to alcohol treatment and only 3.5% of existing beer, wine, cider and spirits revenue is dedicated to addiction recovery.
Without question, more needs to be done to address addiction, which is why last fall a majority of voters supported Measure 110, increasing addiction services funding by more than $57 million. The resources are already there; we just need to use them better.
Before raising taxes on Oregon’s breweries, politicians need to deeply examine the current system and why existing dollars are not being spent on these programs. Brewers stand ready and willing to work with lawmakers and stakeholders on these issues.
In order to survive what has already been an extremely difficult past 12 months, Oregon’s breweries, wineries, cideries, distilleries, restaurants and bars need the support of our customers and elected officials.
Voters know, our businesses are job creators for our state and must be protected, which is why 74% or Oregonians oppose increasing our taxes.
People come to Bend for the outdoor recreation and beer. If Oregon breweries are taxed to death, our community just won’t be the same. Tell lawmakers to oppose HB 3296. Don’t Tax My Drink!
— Robin Johnson is president of the
Central Oregon Brewer’s Guild
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