Oregon's battle against alcohol addiction is taking a step forward with the creation of a task force set to reevaluate the state's approach to alcohol taxation. Leading the charge is Rep. Tawna Sanchez, D-Portland, who has been elected chair of the Alcohol Pricing and Addiction Services task force. The group's purpose: to delve into the repercussions of alcohol abuse on public health and contemplate a potential tax hike on beer and wine to support addiction treatment services, as OregonLive reports.
As reported by State Library of Oregon, the task force, embracing a 20-person composition, features a mix of state legislators, public health authorities, and industry figures from within the state's beer, wine, and cider sectors. Charged with examining the financial toll of alcohol addiction in Oregon and scrutinizing the funding of the state's currently underperforming addiction prevention and treatment system, the task force is also weighing up the merits of increasing taxes on alcoholic beverages, a decision ultimately in the hands of the Legislature.
The industry, critical when business is thorny, has pushed back against rising taxes, highlighted in Jamie Floyd's comment during the meeting, reported by OregonLive, "This is a pretty complicated issue," as he defended that Oregon has been successful in raising funds but struggled in the allocation to intended areas. Floyd, part-owner of Ninkasi Brewing, underscored the challenge facing an industry that saw more closures than openings for the first time in Oregon.
Statistics from the Oregon Health Authority reveal a grim reality: Alcohol accounts for over 2,000 deaths annually, totaling nearly $5 billion a year in state costs. Despite this, advocates and some lawmakers have long been vying for increased taxes, especially since Oregon places among the states levying the lowest beer and wine taxes nationwide. However, proposals for tax hikes, such as Gov. Tina Kotek's failed bid last year to raise the alcohol surcharge by 50 cents, have met resistance. The beer and wine industry boast of the economic value they offer, though sales, notably within the beer market, dipped by 5% last year according to findings from Beer Marketer’s Insights, as detailed by the Portland Tribune.
Currently, taxes from beer, wine, and cider producers contribute over $40 million, and the state's markup on liquor sales generated a notable $625 million from 2021 to 2023. Nonetheless, a paltry 3% of these funds are dedicated to addiction services, disclosed Ramsey Cox, spokesperson for the Oregon Beverage Alliance, which takes a stand against new tax proposals. The conundrum, deepened as alcohol sales represent the state's third-largest source of income, is fitting in the context of its financial importance to Oregon, as Matthew Van Sickle, a spokesperson for the Oregon Liquor and Cannabis Commission, made clear.
