Portland, Ore. (KATU) — A new bill introduced in the Oregon legislature could introduce a sales tax on beer, wine, and cider, starting in 2026. House Bill 3197 proposes a 2% tax on these beverages, gradually increasing to 8% by 2032. The tax would apply to purchases made at both restaurants and grocery stores.
The bill aims to allocate 85% of the revenue to fund youth alcohol and drug abuse prevention programs. However, it has sparked concerns among local business owners and industry groups.
Christine Walter, owner of Bauman’s Cider Company, expressed concerns over the potential impact on the state’s tourism appeal. “I don’t think it’s a surprise to anybody that sales tax is something that Oregon has held at bay—and for good reason,” Walter said in an interview with KATU News. “It makes us a little more attractive as a destination when people are thinking about traveling, and we don’t want to lose that.”
The Oregon Beverage Alliance, which opposes the bill, argues that a sales tax would place an undue burden on consumers already facing high prices. The group also cited a recent survey from Monitoring the Future, which found that youth drinking and drug use are at record lows.
“A regressive sales tax on constituents is the last thing lawmakers should impose, especially when beer and wine sectors are facing closures,” said a spokesperson for the Oregon Beverage Alliance. “In the past two years, 70 breweries, taprooms, and brewpubs, along with 60 wineries and tasting rooms, have shut down due to declining consumption.”
KATU has reached out to Rep. Tawna Sanchez, D-North/Northeast Portland, who authored and amended the bill, but has not yet received a response.
You Might Be Interested In:
