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State Rep. Tawna Sanchez (D-Portland), co-chair of the Legislature’s budget-writing Joint Ways and Means Committee, has long been interested in increasing state taxes on beer and wine (which have remained unchanged since 1977 and 1983, respectively). Sanchez convened a work group with the alcohol industry last year; the group did not agree on a tax hike.
But on March 25, at Sanchez’s request, legislative lawyers crafted an amendment to House Bill 3197 that proposes to implement a retail sales tax on beer and wine, starting at 2% in 2026 and rising to 8% in 2032. The money would be earmarked mostly for alcohol abuse prevention for minors.
The Oregon Beverage Alliance, whose brewer and vintner members are suffering from a post-COVID drinkers’ hangover, slammed Sanchez’s proposal.
“A new 8% sales tax would only harm Oregonians trying to make their hard-earned dollars stretch,” said the Oregon Beverage Alliance. “Additionally, the beer and wine sectors are seeing record closures, with 70 breweries, taprooms and brewpubs and 60 wineries and tasting rooms shuttering in the past two years as fewer people are drinking.”
The Joint Committee on Addiction and Community Safety Response will hold a hearing on Sanchez’s proposal April 2.
This story was produced by the Oregon Journalism Project, a nonprofit newsroom covering rural Oregon.