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Lawmakers say tax will help budget; brewers warn of lost jobs
08:32 AM PST on Monday, February 16, 2009
By ERIC ADAMS, kgw.com Staff
PORTLAND, Ore. -- Five Oregon state lawmakers want to impose a hefty tax on beer and have introduced a bill that brewers say would cripple them.
Four Portland legislators joined a Springfield senator to introduce Oregon House Bill 2461, which would impose a $49.61 tax on each barrel of beer produced by Oregon brewers.
The tax would raise revenue for the state at a time when budgets are running in the red. Specifically, the bill says it would fund prevention, treatment and recovery programs for those addicted to alcohol and other substances.
It also defends the tax by claiming alcoholism and “untreated substance abuse” costs the state $4.15 billion in “lost earnings” as well as more than $8 million for health care and nearly $1 billion in law enforcement-related expenditures.
HB 2461 claims Oregon ranks 49th among states in its malt beverage taxation rate, which has not been raised in 32 years.
Brewers say it’s that low tax that makes Oregon such an attractive business climate for crafting beers, though. The state’s brewery guild claims it would also amount to the single largest beer tax hike in the nation's history.
Laurelwood Public House & Brewing Co. owner Mike De Kalb said the tax may sound like a good idea in this economic climate, but that in reality it would cost more Oregonians their jobs and would only amount to about $140 million in new tax revenue for the state.
Meanwhile, it would cost beer drinkers about $315 million as breweries are forced to pass along the tax increase.
“We’re a family-owned, local Portland business. We don’t want to see something cost taxpayers more than the revenue it would bring in,” De Kalb said. “If that tax is passed it would mean consumers would pay $315 million more (in 2009) to buy the same amount of beer they bought in 2008. A pint of beer would go from $4.50 to $6.”
De Kalb said Oregon would potentially lose its prominence as a craft-brew destination and that some small breweries could potentially go out of business.
He said Laurelwood could possibly face job cuts as well.
Prior versions of the beer tax bill have exempted small breweries but this one does not, he added.
House Bill 2461 has been introduced by Portland Reps. Ben Cannon and Michael Dembrow, Portland Sens. Jackie Dingfelder and Diane Rosenbaum, and Springfield Sen. William Morrisette.
08:32 AM PST on Monday, February 16, 2009
By ERIC ADAMS, kgw.com Staff
PORTLAND, Ore. -- Five Oregon state lawmakers want to impose a hefty tax on beer and have introduced a bill that brewers say would cripple them.
Four Portland legislators joined a Springfield senator to introduce Oregon House Bill 2461, which would impose a $49.61 tax on each barrel of beer produced by Oregon brewers.
The tax would raise revenue for the state at a time when budgets are running in the red. Specifically, the bill says it would fund prevention, treatment and recovery programs for those addicted to alcohol and other substances.
It also defends the tax by claiming alcoholism and “untreated substance abuse” costs the state $4.15 billion in “lost earnings” as well as more than $8 million for health care and nearly $1 billion in law enforcement-related expenditures.
HB 2461 claims Oregon ranks 49th among states in its malt beverage taxation rate, which has not been raised in 32 years.
Brewers say it’s that low tax that makes Oregon such an attractive business climate for crafting beers, though. The state’s brewery guild claims it would also amount to the single largest beer tax hike in the nation's history.
Laurelwood Public House & Brewing Co. owner Mike De Kalb said the tax may sound like a good idea in this economic climate, but that in reality it would cost more Oregonians their jobs and would only amount to about $140 million in new tax revenue for the state.
Meanwhile, it would cost beer drinkers about $315 million as breweries are forced to pass along the tax increase.
“We’re a family-owned, local Portland business. We don’t want to see something cost taxpayers more than the revenue it would bring in,” De Kalb said. “If that tax is passed it would mean consumers would pay $315 million more (in 2009) to buy the same amount of beer they bought in 2008. A pint of beer would go from $4.50 to $6.”
De Kalb said Oregon would potentially lose its prominence as a craft-brew destination and that some small breweries could potentially go out of business.
He said Laurelwood could possibly face job cuts as well.
Prior versions of the beer tax bill have exempted small breweries but this one does not, he added.
House Bill 2461 has been introduced by Portland Reps. Ben Cannon and Michael Dembrow, Portland Sens. Jackie Dingfelder and Diane Rosenbaum, and Springfield Sen. William Morrisette.
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