Colin Rath, Alex Sokol Blosser and Aaron Sarnoff Wood
Rath is co-owner of Migration Brewing in Portland. Alex Sokol Blosser is co-president of Sokol Blosser Winery in Dundee. Aaron Sarnoff Wood is co-founder of 2 Towns Ciderhouse in Corvallis
Closures due to COVID-19, coupled with unprecedented wildfires, have had a devastating impact on Oregon’s breweries, wineries, cideries, tasting rooms, restaurants and brewpubs. Gov. Kate Brown knows this and that is why her proposed budget doesn’t include harmful tax increases that would add insult to injury for our homegrown businesses.
Restaurant, bar, tasting room and brewpub closures and restrictions because of COVID-19 have already harmed our business models. According to the National Beer Wholesalers Association, losses of on-premise sales this year could reach $1 billion for the U.S. beer industry. The Brewers Association estimates 20% of craft breweries are unsure they will be able to remain open through the end of the year and we’re already seeing closures in our communities — Base Camp Brewing Co., Salem Ale Works, The Ram’s Clackamas brewery, Look Long Brewing and Ross Island Brewing. National revenue losses for wineries and wine grape growers due to COVID-19 is expected to reach $5.94 billion in 2020. And 50% of America’s cideries had to lay-off employees due to lost revenue this year.
Prior to the COVID-19 pandemic, Oregon was home to 400 breweries, 900 wineries, 1,200 vineyards, 100 cideries and 10,000 restaurants, creating thousands of good-paying jobs and several billion dollars in wages. Many of those jobs are now at risk or have been lost. According to the Oregon economic forecast, the hospitality sector – including restaurants, brewpubs and tasting rooms – has been hit hardest this year with more than 50,000 jobs lost. Tax increases would only make it harder for local businesses to invest in rehiring, equipment, upgrades and expansion, and would result in higher prices for consumers.
Oregon’s beer, wine, cider and spirits sectors are the third largest source of revenue for the state — behind income taxes and the state lottery. But for some reason, less than 1% of Oregon’s budget goes to alcohol treatment and only 3.5% of existing beer, wine and spirits revenue are dedicated to addiction recovery. Before raising taxes on Oregon’s local brewers, wineries and cidermakers, we need to deeply examine the current system and why existing dollars are not being spent on these programs.
As local businesses and residents, we care deeply about our communities. That’s why we invest and create jobs here in Oregon. Without question, more needs to be done to address addiction and we stand ready and willing to work with lawmakers and stakeholders on these issues. The resources are there, we just need to use them better.
In November, Oregonians overwhelmingly voted to increase funding for addiction recovery – by more than $57 million a year, based on projections – through Ballot Measure 110. We believe this new allocation makes it unnecessary to raise taxes on Oregon’s local beer, wine and cider businesses.
While Gov. Brown chose not to recommend a tax in her proposed budget, we know groups are still advocating for as much as an 800% tax increase to drive up the cost of beer, wine and cider at the expense of businesses already struggling with the COVID-19 recession.
Voters know our businesses are vitally important to Oregon’s identity and economy and must be protected. We hope more lawmakers in Salem agree with the governor and see now is the time to be supporting Oregon’s breweries, wineries, cideries and restaurants, who help strengthen our communities.
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December 06, 2020 at 09:00PM
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Opinion: With closures and layoffs, Oregon’s beer, wine and cider industries need support, not new taxes - OregonLive
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