Oregon's Gov Proposes Yet Another 50 Cents a Bottle Spirits Surcharge

The proposal by Oregon Gov. Tina Kotek is on top of a temporary 50-cents-a-bottle surcharge recently extended by the Oregon Liquor & Cannabis Commission.

The proposed new tax would, the governor says, fund addiction and recovery services.

While conceding the proposal is "well intentioned," the Distilled Spirits Council of the U.S. is not impressed. "Putting the tax burden solely on spirits businesses and consumers – the vast majority of whom enjoy spirits responsibly – is misguided,"  said Adam Smith, DISCUS vp-state government relations.

“Increasing taxes on responsible spirits consumers and hospitality businesses in the midst of continued negative financial impacts from the pandemic and in addition to high inflation, supply chain issues and staff shortages will be harmful,” Smith said. "“Governor Kotek should be supporting local hospitality businesses and consumers during this challenging time, not increasing the already heavy tax burdens they face. Increased taxes will be passed on to consumers in the form of higher prices. Higher prices lead to a loss in sales, and a loss in sales leads businesses to cut employment.”

And, he added, “State services should be funded by all taxpayers, not a singular group which already faces the second highest tax rate in the nation."

The governor's proposal requires legislative approval.