HB 3197
Requires the Legislative Revenue Officer to study the taxation of the sale of beer and wine.
Jurisdiction
Oregon
Session
2025 Regular Session
Committee
Addiction and Community Safety Response
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Sign in to take actionPublic sentiment
Support
35%
Oppose
65%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill directs the Legislative Revenue Officer (LRO) to conduct a study on the taxation of beer and wine sales in Oregon. The LRO is tasked with analyzing the current tax structure and submitting a report, including potential legislative recommendations, to the interim committees of the Legislative Assembly by September 15, 2026. The study’s findings will be available to lawmakers to inform future policy decisions regarding alcohol beverage taxes. The bill expires on January 2, 2027.
Key provisions
- The Legislative Revenue Officer (LRO) must study the taxation of beer and wine sales.
- The LRO must submit a report with recommendations to interim legislative committees.
- The report deadline is September 15, 2026.
- The bill expires on January 2, 2027.
Who is affected
- Oregon consumers of beer and wine
- Oregon liquor retailers
- The Legislative Revenue Officer
- Interim Committees of the Legislative Assembly
- The State of Oregon
Notable changes
- The bill mandates a specific study on alcohol beverage taxation.
- It establishes a clear deadline for the LRO to submit its findings.
Arguments in favor
Reasons to support this legislation.
Supporters of House Bill 3197 emphasize the need for increased revenue to address Oregon's youth substance use crisis, citing inadequate resources and the consequences of untreated substance use. They advocate for the bill's proposed incremental retail tax on alcoholic beverages to fund youth substance abuse prevention programs and county-level services, highlighting the importance of early intervention in reducing harm and improving outcomes. Many testifiers share personal experiences of overcoming addiction or losing loved ones to substance use disorder, underscoring the need for comprehensive services, including evidence-based programs and training for healthcare professionals. They believe that investing in prevention and treatment strategies can lead to better outcomes, such as reduced homelessness and incarceration, and urge lawmakers to support Hb 3197 to address Oregon's alcohol and drug crisis among youth.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of House Bill 3197 argue that imposing an 8% sales tax on beer and wine would have significant adverse effects on the local economy, consumers, and small businesses. They contend that this tax would disproportionately harm Oregon's craft breweries, wineries, and cideries, which already face challenges due to market shifts, inflation, supply chain issues, and employee shortages. Many concerns that this tax would increase costs for consumers, reduce affordability, and ultimately harm the state's wine industry, which contributes significantly to the economy. Some argue that Oregonians are already paying enough in taxes and that this bill would unfairly burden lower-income individuals and make affordable products inaccessible.