The Oregon Health Authority (OHA) is under scrutiny after a 2021 study on the impact of proposed higher beer and wine taxes on excessive alcohol use has been brought to light, The Oregonian reported.
The study contradicts some legislators’ claims that a higher tax would significantly help curb alcohol abuse in the state. Legislators have made several attempts over the past few years to raise taxes, including a nearly 3,000% increase from $2.60 per barrel to $72.60 per barrel, proposed in 2021 (H.B. 3296), and a 1,200% increase, to $33.60 per barrel, proposed in 2023 (H.B. 3312).
The report, conducted by EcoNorthwest and finalized in November 2021, examined the impact of excessive alcohol use on Oregon’s economy, as well as the economic impact of raising the state’s excise tax on beer and wine to $0.20 per standard serving.
The latter found that increased taxes would result in a small decrease in heavy alcohol use, reducing the economic burden by up to $53 million (about 2% of the estimated annual costs). However, the state’s “heaviest drinkers” would only cut their consumption by an estimated 2%, with consumers more likely to switch to less premium products.
The results of the tax-focused portion of the study were not published on the OHA website, and have been absent from political discussions about proposed tax raises, according to the Oregonian. Tom Jeanne, OHA deputy state health officer, told the news outlet that the study would have been published under normal circumstances, were it not for a lack of staffing following the COVID-19 pandemic.
The Oregon Beverage Alliance (OBA), a group of local brewers, winemakers, cidermakers, distillers and other industry members, and the founders of DontTaxMyDrink.org, are criticizing the OHA for the alleged lack of transparency.
“This shocking news is deeply concerning that the Oregon Health Authority appears to have intentionally buried a taxpayer-funded study it commissioned because the findings contradicted efforts to justify raising alcohol taxes,” The OBA said in a press release. “As the Task Force on Alcohol Pricing and Addiction Services prepares to hear more potential bias and inaccuracies from Oregon Health Authority at the upcoming Feb. 1 meeting, how can members trust the information Oregon Health Authority is providing to stakeholders and policymakers?
“If Oregon Health Authority, and possibly others, knew about the report findings in 2021, and yet continued to advocate that increasing alcohol taxes would reduce consumption for problem drinkers, this appears deceptive and we demand answers. Oregonians should be able to expect truth and honesty from the Oregon Health Authority – a public health agency – and once again it violated that trust.”
The aforementioned task force is in charge of studying several aspects of Oregon’s bev-alc industry, including the “benefits and drawbacks of imposing taxes on beer and wine,” according to the state’s website. The task force – which is chaired by Rep. Tawna Sanchez (D-Portland), the same legislator who introduced both bills that proposed tax increases in 2021 and 2023 – held its first meeting earlier this month.