Oregon Beer Tax Set to Rise 1900% as New Bill Hits Oregon House

A new proposal in front of Oregon state lawmakers could lead to a huge increase in the Oregon beer tax very soon. For a long time, Oregon has had one of the lowest taxes on beer, with a major newspaper in Oregon putting it at about 1 cent per glass of beer. It hasn't changed in more than 30 years, and the tax rate hasn't been a huge source of revenue for the state. If the new proposal does end up passing though, it could turn the Oregon beer tax into a big cash-cow for the state.

According to the Oregonian (a major newspaper in Oregon), two-term Representative Ben Cannon is the chief sponsor of the Oregon House bill. In the bill, the Democrat from Portland wants to raise the tax on a 12-ounce beer to 15 cents that would then go to drug and alcohol abuse prevention and treatment within the state. It was also reported that he would be open to talking about where the funds from the tax increase go in the end, and is even willing to discuss the amount of the tax.

From the outside, it is an interesting proposal that could end up really increasing the overall tax amount on beer in the state. This would be an increase of about 1900%, and the sheer percentage of the increase in really unheard of in past tax adjustments. The increase would be about $2.60 from just tax alone on every barrel of beer, and though a 15 cent increase on a glass of beer might not sound like a lot, the taxes that could be collected from this increase could really make a difference in covering other things within the state of Oregon's budget.

This is one of those tax proposals that are definitely going to receive a lot of publicity, and it isn't all going to be good. It's a risky move for a House Representative to propose a tax that could affect so many people so quickly, but it could also be seen as a bold move to help catch Oregon up to many other states that have much higher taxes currently. This could play out in conjunction with proposed raises in cigarette taxes as well, and put a number of issues in front of the Oregon House at the same time. Whether this bill will pass in the end may rest on how much criticism it faces, and how many people are willing to stand up to fight the increases.

Source: Oregon news