Oregon Beer tax........Goodie!

Or "Malt Beverage Cost recovery Fee"

Yep…..you read it right. It’s not a beer tax but a “Recovery Fee” for beer sold in Oregon. OK…..

With all the "fluff" out of Salem these days, I'm surprised it's not the "2007 Save Liver Control Act For The Kids"

Some of the highlights:

• Imposes a $32 per barrel tax on beer.

• Takes Oregon from 45th in beer taxes to 1st.

• Only applies when the producer makes over 125,000 barrels per year.
• Full Sail and Deshutes each make over 150,000.

• Tax will adjust for inflation.

• Will cost a “dime a drink”... drink beer and pay 10 cents for the tax.
• Most likely will violate the Commerce Clause because of the 125,000 cut-off.

Where The Money Goes

The money raised will be about $80 million per year and with inflation adjustments will rise about 3% per year. Around 40% will go to the State for Alcohol and Drug programs and policing. The remaining 60% will go to local taxing entities in 7.7% increments. Some to cities, some to counties, some for drug abuse, some for housing and so on.

Now I am not totally against a beer tax, it has been very low because Oregon was a “Producer State” when Henry’s was pumping out large amounts of beer. And probably needs to be raised to pay for some of the drain it puts on State programs.

But the size and scope of this tax is absolute insanity. Most of this tax is going to be used for things that have nothing to do with beer. Drugs and Drug Court? Mental Health? Why should a beer drinker have to pay for all this?