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February 17, 2009

Oregon to raise beer tax 1900%

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Written by: BeerMagDerek

Yes that looks like a typo, but it’s something in the works that has Oregon’s brewing community worried. While there hasn’t been a tax increase on brewing in the state in over 30 years, some feel this is unfairly targeted on breweries.

The tax is justified by lawmakers saying it will go toward alcohol abuse centers that are said to take 4 billion out of the states funds, but Breweries are questioning why Beer is the only target of the outrageous tax hike. In some of the interviews with brewers there they state that it might affect the cost of a pint of beer by as much as $1.50!

Tax hikes are pretty common since about the days our founding fathers threw tea overboard, but there is something about unrealistic and taxes and unfair targeting of a booming beer industry in the state. Let’s not forget that some states are “monkey see, monkey do” and that if it passes here the “beer tax fever could spread nationwide.

The beer community is outraged and the only way to help stop the madness is to talk to your local congressman and get them to realize that the beer industry is fragile and at this point in our economy this tax could be a fatal wound to the states beer culture. Do we really think $6 pints of beer is keeping beer off the street?

To be fair we’ve attached a list of current tax rates on beer across the country to show that Oregon would go from the lowest to the Nation’s highest.

EXCISE
TAX RATES
($ per gallon)

SALES TAXES
APPLIED

OTHER TAXES

Alabama

$0.53

Yes

$0.52/gallon local tax

Alaska

1.07

n.a.

Arizona

0.16

Yes

Arkansas

0.23

Yes

under 3.2% – $0.16/gallon; $0.008/gallon and 3% off- 10% on-premise tax

California

0.20

Yes

Colorado

0.08

Yes

Connecticut

0.19

Yes

Delaware

0.16

n.a.

Florida

0.48

Yes

2.67ยข/12 ounces on-premise retail tax

Georgia

0.32

Yes

$0.53/gallon local tax

Hawaii

0.93

Yes

$0.54/gallon draft beer

Idaho

0.15

Yes

over 4% – $0.45/gallon

Illinois

0.185

Yes

$0.16/gallon in Chicago and $0.06/gallon in Cook County

Indiana

0.115

Yes

Iowa

0.19

Yes

Kansas

0.18

over 3.2% – {8% off- and 10% on-premise}, under 3.2% – 4.25% sales tax.

Kentucky

0.08

Yes*

11% wholesale tax

Louisiana

0.32

Yes

$0.048/gallon local tax

Maine

0.35

Yes

additional 5% on-premise tax

Maryland

0.09

Yes

$0.2333/gallon in Garrett County

Massachusetts

0.11

Yes*

0.57% on private club sales

Michigan

0.20

Yes

Minnesota

0.15

under 3.2% – $0.077/gallon. 9% sales tax

Mississippi

0.4268

Yes

Missouri

0.06

Yes

Montana

0.14

n.a.

Nebraska

0.31

Yes

Nevada

0.16

Yes

New Hampshire

0.30

n.a.

New Jersey

0.12

Yes

New Mexico

0.41

Yes

New York

0.11

Yes

$0.12/gallon in New York City

North Carolina

0.53

Yes

North Dakota

0.16

7% state sales tax, bulk beer $0.08/gal.

Ohio

0.18

Yes

Oklahoma

0.40

Yes

under 3.2% – $0.36/gallon; 13.5% on-premise

Oregon

0.08

n.a.

Pennsylvania

0.08

Yes

Rhode Island

0.10

Yes

$0.04/case wholesale tax

South Carolina

0.77

Yes

South Dakota

0.27

Yes

Tennessee

0.14

Yes

17% wholesale tax

Texas

0.19

Yes

over 4% – $0.198/gallon, 14% on-premise and $0.05/drink on airline sales

Utah

0.41

Yes

over 3.2% – sold through state store

Vermont

0.265

Yes

6% to 8% alcohol – $0.55; 10% on-premise sales tax

Virginia

0.26

Yes

Washington

0.261

Yes

West Virginia

0.18

Yes

Wisconsin

0.06

Yes

Wyoming

0.02

Yes

Dist. of Columbia

0.09

Yes

8% off- and 10% on-premise sales tax

U.S. Median

$0.188



About the Author

BeerMagDerek

Publisher. Editor. Janitor.






Beer Magazine
Beer Magazine

3 Comments


  1. This is FREAKING ridiculous. Oregon has some stellar breweries, which may consider either folding or else moving elsewhere, and how is THAT going to help raise state revenues?

    What’s more, this is damaging to the homebrew culture in this state, if it exists. People who start brewing generally do so to emulate fine brews they’ve had in pubs. Without these breweries to stimulate the art of brewing, homebrew suppliers may decide it’s not worth it to produce for the homebrewer, and we may get fewer converts to the hobby.

    In the long run, this doesn’t help anyone. Of course, torpedoing the industry may be their goal.


  2. NickH

    That’s a bit ridiculous. The money goes to rehab programs for alcoholics? Then tax hard alcohol and cheap beer, not microbreweries.


  3. Damn right the beer community is outraged! What’s next? Are they going to make the Oregon beer community bail out AIG too?



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