Beer drinkers are able to breathe a sigh of relief, as legislation to raise taxes on beer was shelved at the State Capitol before the legislature adjourned. H.R. 2461, slated to increase the tax on 31-gallon barrels by just over 1900% from $2.60 to $49.61, was set aside despite last-minute efforts to get it heard and moved from the House Ways and Means committee.

            The bill, authored by East Portland Rep. Ben Cannon (D-Portland), would have raised the privilege tax for the first time in 32 years, causing the estimated retail price of a pint of beer to rise by over $1.50. The revenue from the tax would be allocated to alcohol and drug treatment programs. The tax would have catapulted Oregon from the 49^th ranked state for beer taxes to the top, beating Alaska’s privilege tax by nearly a third.

            The bill came under fire in February by local beermakers and alehouse owners, stating that the tax would prohibitively raise the price of a six-pack in a bad economy. Kurt Widmer of Portland-based Widmer Brewing Company remarked, "Beer drinkers, whether you want to argue the math or not, will pay an increased amount at a time they are all suffering as we are.” Critics of the tax state that raising a tax on a thriving industry would undercut its progress and put it at a disadvantage against national brewers. Mike DeKalb, the owner of Laurelwood Public House and Brewery in Portland, noted that small breweries in the state could be forced out of business and Oregon’s stature as a beer-making haven would be damaged.

             Cannon does not plan to stop lobbying for an increase in the beer tax. A joint proposal with State Sen. Floyd Prozanski (D-Eugene) would look at developing a two-tiered tax system, with a $23 increase for large quantity brewers and a $5 increase for small craft brewers. The proposal may potentially be heard in an emergency session slated for February of 2010, though it may be shelved due to increases in other taxes that have already been signed into law.

            H.R. 2461 was also sponsored by Senators Jackie Dingfelder and Diane Rosenbaum of Portland, Senator Bill Morrisette of Springfield, and Representatives Mike Dembrow of Portland.