Keep the Beer Tax Debate in Perspective:

Q. Does a 2¢ per drink tax on beer represents a “Modest” increase?

A. Increasing Oregon’s current tax rate on beer by 2¢ per drink represents a whopping 254% tax increase! The proposed 2¢ per drink tax would increase Oregon’s tax from the current rate of $2.60 per 31 gallon barrel to $9.21 per 31 gallon barrel.

Q. Is Oregon’s tax rate is unusually low?

A. In comparing Oregon to other “beer-producing” states, Oregon’s tax is already higher; and, thanks to a growing and flourishing micro-brew industry, Oregon is a “beer-producing” state. Keep in mind that approximately 10% of beer consumed in Oregon is produced in Oregon by Oregonians.

Comparison of Beer Taxes in Beer Producing States:
Oregon = $2.60 per 31 gallon barrel
Colorado = $2.48 per 31 gallon barrel
Wisconsin = $2.00 per 31 gallon barrel
Missouri = $1.86 per 31 gallon barrel

Q. Would a “Modest” increase of 2¢ per drink would not impact producers?

A. Testimonials from Oregon producers clearly identify that an increase of this size would have a detrimental impact on a growing Oregon industry. Other “Beer-producing” states typically do not impose excessive tax rates on home-state products. These states recognize that home-based industries significantly contribute to the economy through well-compensated employment, income taxes, and property taxes.

Q. Would a 2¢ per drink increase help bring Oregon’s tax in line with other states?

A. Increasing Oregon’s tax by 254% would make Oregon’s tax higher than 35 other states and make Oregon’s tax substantially higher than the median tax rate of all states.

On a regional basis, increasing Oregon’s beer tax by 2¢ per drink would place Oregon at the top:

Oregon (with the proposed 254% increase) $9.21 per 31 gallon barrel
Washington $8.08 per 31 gallon barrel
California $6.20 per 31 gallon barrel
Idaho $4.65 per 31 gallon barrel
Nevada $2.79 per 31 gallon barrel
Montana $4.30 per 31 gallon barrel

Q. Is a beer tax increase is essential to balancing the state’s budget?

A. A 2¢ per drink tax would not generate significant General Fund revenue. According to the Legislative Revenue Office, a 254% tax increase is expected to generate less than $15 million on an annual basis.

Keep in mind that any increase would be in addition to the FEDERAL EXCISE TAX (FET) which is currently $18.00 per 31 gallon barrel.

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