PORTLAND, OR (KPTV)- A bill that proposed a significant tax increase on wine products and beer manufacturers is now being amended to include all players in creating legislation to address funding for addiction services.

The Addiction Crisis Recovery Act would have raised taxes on beer and wine producers to fund addiction recovery services.

"The only way to tax beer and wine to bring the retail price up 20% with the goal of then reducing harmful consumption by 10% was to put it at the manufacturer level," Mike Marshall, executive director for Oregon Recovers, said.

The tax on beer and cider would have spiked nearly 2,800% from $2.60 a barrel to $72.60. For wine, the increase would be a jump from 65 cents per gallon to $10.65.

Opponents like Christina LaRue, the executive director for the Oregon Brewers Guild, said. At the same time, they understand the need for funding addiction services. Any tax hike could be detrimental to the industry.

"A tax increase would, especially right now, with businesses that are just trying to keep their head above water as the state reopens. A tax increase could close their doors," LaRue said.

At the moment, LaRue said the originally proposed tax is off the table. House Bill 3377, drafted initially to create the Addiction Crisis Recovery Fund, is being amended to create The Task Force on Substance Use.

This group will be made up of several players, including health officials, addiction treatment providers, and a representative from the alcohol manufacturing industry.

beer flight

KPTV File Image

"Number one, reduce underage drinking by 25% and binge drinking by 20% using pricing and taxation," Marshall said. "Then, the other thing they have to address is fully funding the strategic plan, the system of care, designed by the state over the last two years."

LaRue said the guild wants more discussions before jumping straight to a tax increase.

"Before you increase our taxes, let's take a look at the current funding the state gets from excise taxes," she said. "Only 3 to 3.5% of those dollars are actually going to those services. The rest is going to the general fund. Figure out if there's a way to move more money first."

Now HB 3377 will be taken up in a work session to address the amendment on Monday.

Copyright 2021 KPTV-KPDX Broadcasting Corporation. All rights reserved. 

Locations

Recommended for you

(14) comments

commentor

And this 'addiction recovery fund' money will somehow find its way into the general fund for pet projects and bailing out PERS.

Goose Goose

The addiction treatment industry is said to be extremely profitable. State was talking about funneling marijuana tax revenue to recovery funds... not just for marijuana, but junkies too. All backed by lobbyists from the industry, of course.

Procyon

So, the “new” bill will include “stakeholders” so they can wet their beaks through consulting fees.

Worst PDX Mayor Ever

I don't drink, so this really doesn't impact me. However, I'm suspect about how much of the money goes directly to core of the problem, and I'm doubly suspect that anything that state tries to do in terms of reducing addiction will EVER be successful. Look at the homeless problem. Look at public safety. Look at infrastructure. Look at how downtown Portland has turned into a war zone. It's pretty obvious that at a time when we need serious adults to tackle real problems, all we have are adult looking people, with the collective mind of a child.

Woke Eyesaidsir

Yup.... 'tis "money grubbing time" .... Get this: Ted, The Rastafarrian and others of the mayor's crewe are not EMBOLDENED..... they feel that they 'made it' through BLM wrecking the City ... and the crewe now feels like they can get away with ANY proposal. The city of Portland would be better served by converting to Thunderdom status. Iron Bar.... meet THe Rastafarrian in the circle of public opinion. Censure THIS!!!!!

RetDOD

Since my post this morning didn't make it through, will just leave this little bit here from Dec 2020. She is the evil behind the curtain.

Lost in the flap over Gov. Kate Brown's decision last week not to push for an increase in beer and wine taxes is the fact that Brown is proposing a small increase—25 cents a bottle—in the price of hard liquor, on which the Oregon Liquor Control Commission holds a monopoly

Kenny Rogers

How much money needs be plunked into recovery and treatment? Especially when success rates are so low, and relapse rates are so high? Do the research folks, many of these rehab facilities and recovery centers have very dismal success rates. It's almost as if the facilities want their clients to keep having to come back, as if it's all about that money???? Maybe Ol' Kenny is crazy?

Woke Eyesaidsir

Right out of the liberal playbook. Improving our lives, improving our society.... by taking, without asking our permissions, our $$ in the form of 'tax' . whilst telling us, for our own good, that Govt knows best..... that this is "for our own benefit"!!

Sma thing is coming, in spades, out of the Harris-Biden White House. Practice your bleating Americans....

evilkitty76

So again the liberal idiots democrats want to punish those who can control them selves by making us pay for those who cant. Up yours!

Jefferson

Evidence is steadily building that the effects of cannabis, in all its forms, with and without THC, is going to result in more long-term harm than alcohol if we don't address it quickly. Where are all the use/abuse folks on this? :)

Moved on

i stopped drinking 6 years ago.

proud of it too

Toothache

Marshall and anyone else who thinks this is a good idea needs to be thrown under a bus. The money will be wasted and nothing will change.

maxine

I say no. I don't drink, but the last thing we need to do is raise more taxes and create more government. I'm tired of government trying to manipulate the population through taxation.

nativepdx

The greed of democrats to raise taxes that never go to the problem, is never ending.

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.