Proposed $830 Million Tax May Hurt Local Grocers

Date: October 31, 2018

A recent series of “sin taxes” proposed by the Oregon Health Authority may lead to higher operating costs for grocers in Oregon, especially smaller mom and pop shops, as detailed in the 2018 “Sin Tax Study: Hurts Everyone but the User,” by the Oregon Business Report.

According to the Oregon Health Authority’s 2019-2021 draft budget, an increase in sin taxes across the state may cover the state’s rising Medicaid costs. The $830 million in new taxes will increase the cost of cigarettes, beer, and wine. If passed, this will be the first time in 40 years that the cost of beer has been increased and the 32 years for wine.

“If Oregon does not increase tobacco prices and fund tobacco prevention, Oregonians—both adults and children—will continue to suffer from the health consequences of tobacco and chronic diseases,” the budget document states.

The proposed taxes on alcohol is expected to bring in an additional $491 million.

Related Content: Small Business News | Oregon | Taxes

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