Distilled Spirits Council slams Oregon tax

The Distilled Spirits Council has branded a proposed spirits levy in Oregon a “stealth tax” which “unfairly targets” spirits consumers.

The Distilled Spirits Council has branded a proposed spirits levy in Oregon as a ‘stealth tax’

Governor Kate Brown, a Democrat, has called for an additional mark-up of 50 cents per bottle of spirits.

The new tax comes in addition to a previously approved “temporary” mark-up of 50 cents, and would result in an extra US$1 per bottle added to the price paid by consumers.

“Oregon spirits consumers already pay more than their fair share in taxes,” said Distilled Spirits Council regional vice president, Adam Smith.

“The spirits sector already generates $245 million in state and local taxes, with 60 percent of a bottle’s shelf price going to taxes.  Since Oregon’s excise tax rate is five times the national average, adding yet another tax is simply punitive.”

He continued: “Oregon Liquor Control Commission Chairman Rob Patridge and his colleagues have made great strides in modernizing their operations to better serve consumers and spirits makers while generating additional revenue for the state.  Targeting distilled spirits sold in Oregon with another major tax increase hurts consumers, as well as the state’s growing distilling community.”

According to the Distilled Spirits Council, Oregon’s spirits industry supports more than 15,000 local hospitality jobs, paying out US$275 million in wages and generating US$1.4 billion in economic activity for the state.

There are more than 70 distilleries in Oregon, including House Spirits Distillery, which sold its Aviation American Gin to Davos Brands last month.

Oregon has one of the highest concentrations of distilleries in the US, ranking behind California, New York, Washington, Colorado and Texas.