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
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.
That’s a bit ridiculous. The money goes to rehab programs for alcoholics? Then tax hard alcohol and cheap beer, not microbreweries.
Damn right the beer community is outraged! What’s next? Are they going to make the Oregon beer community bail out AIG too?