In November, Oregonians will vote on Measure 108, which would tax vaping supplies for the first time and raise the tax on a cigarette pack from $1.33 to $3.33; yet beer and wine haven’t had a tax raise in 40 years. The nonprofit Oregon Recovers wants to change that, and is being met with resistance.
Willamette Week reports that on Thursday, Aug. 27, executive director of Oregon Recovers, Mike Marshall, outlined a plan that would raise money for the Oregon Alcohol and Drug Policy Commission which was created by the Oregon Legislature to improve the effectiveness of state and local substance abuse prevention, treatment, and recovery services.
Oregon Beer & Wine Distributors Association and other main players in the alcohol industry for the state responded with criticism, writing a letter to Gov. Kate Brown saying, “We urge you to support and protect jobs and the economic viability of this critical industry by opposing additional beer, wine and spirits taxes.”
According to a 2018 report by USA Today, Oregon ranked 16th among the U.S. for percentage of adults who drink in excess and 19th among drunk driving related deaths.
On Monday, Aug. 31, the Oregon Health Authority released a budget proposal for 2021-2023 that contained a tax increase for alcoholic beverages of almost $150 million per year. The agency indicated it wants support from Oregon Recovers.
The economic impacts of COVID-19 have left the state facing a huge budget deficit next year. This is, in part, why alcohol and tax hikes are being talked about.
Marshall and OHA are facing formidable opposition. Danelle Romain, a lobbyist for the Oregon Beer & Wine Distributors Association, says the industry she represents is a necessary part of Oregon’s Economy as well as a huge part of the state’s identity.
“These are local businesses, supporting local jobs—that’s why it’s different,” Romain said. “Prior to the COVID-19 pandemic, Oregon was home to 800 wineries, 1,144 vineyards, 73 distributors, nearly 400 breweries, more than 50 distilleries and more than 10,000 restaurants, creating thousands of family-wage jobs.”
Also, it’s been reported that more than 75 percent of Oregon adults drink alcoholic beverages while fewer than 20 percent use tobacco products. Despite Romain’s past success in these conversations, there may be competition from Marshall.
Dwight Holton, executive director of Life Lines, an organization that strives to prevent substance abuse and promote mental health, said to Willamette Week, “Mike [Marshall] is building a very potent organizational force around recovery.”
Holton, who also sits on the Alcohol and Drug Policy Commission, goes on to say that Oregon Recovers has strength because it can mobilize lots of people at any time.
The tobacco industry has not reacted to the new Oregon tax despite past opposition, and they are still expected to make huge amounts in revenue.
Brown and the lawmakers who voted to raise tobacco taxes last year have not yet spoken out on the alcohol tax.
By Hannah Ramsey
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