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Oregon Beer Tax set to increase by a staggering 1,900%

Published on: February 16, 2009 at 3:50 PM ET
Duncan Riley
Written By Duncan Riley
News Writer

Beer drinkers in Oregon may be in for a rude surprise: a 1900% increase in beer tax.

Rep. Ben Cannon is sponsoring a bill in the Oregon House that would raise the tax on a 12-ounce beer (350mls) to 15 cents, or nearly $50 on a barrel of beer.

Those protesting the proposed change note that the net effect for drinkers is far more than 15 cents once the beer goes through the distribution chain, with the price of a $4 pint likely to go to $5.50.

If that tax is passed, consumers would pay $315 million more per year for beer in the state.

Although 1900% makes for a good headline, it’s important to note how it’s calculated: the current tax on a 12 ounce beer in Oregon is 1 cent.

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