Washington and Oregon lawmakers have both proposed alcohol tax increases, creating potential challenges for breweries and wineries across the region.
WASHINGTON, USA — Brewers in the Pacific Northwest face rising tax challenges from both Washington and Oregon, with proposals that would increase alcohol taxes on both sides of the Columbia River.
In Washington, House Bill 2079, introduced by Democratic Representatives Davis and Fitzgibbon, would raise the beer excise tax.
The Washington Brewers Association says a new bill could double the excise tax on beer for local brewers.
Under the proposal, the excise tax would increase from $4.78 to $9.56 per barrel for smaller breweries producing fewer than 60,000 barrels annually. Larger operations would see their rate rise from approximately $8.08 to $16.16 per barrel. The proposed effective date is July 1, 2025.
“Enough ... this could be the last straw for a lot of breweries,” said Bryan Shull, founder of Trap Door Brewing in Vancouver, which produces about 2,000 barrels a year.
Shull, who grew up in southwest Washington, will mark 10 years in business later this month. A member of the Washington Brewers Guild, he said he was frustrated to learn about the bill earlier this week and noted that others in the industry had similar reactions.
“At some point, we’re just not going to have margins to survive the headwinds,” he said. “There’s going to be a lot of us that just say, ‘OK, that’s the one that does it for me.’”
Brewery owners across Washington say small, independent operations are already facing rising costs, shifting consumer habits, and a sluggish post-pandemic recovery. They worry that the tax hike would further strain local producers.
“Taxing us out of existence isn’t going to solve the budget issue,” said Erika Barnett, co-owner of Salish Sea Brewing in Edmonds. “It’s going to erase the heart of the communities that make us thrive across the state.”
In Oregon, Rep. Tawna Sanchez, a Portland Democrat, has introduced a proposalto raise retail taxes on beer, wine and cider to 8% by 2032. The proceeds would pay for substance abuse prevention for Oregon youth. Her amendment to House Bill 3197 would create Oregon's first ever state grocery and restaurant sales tax specifically targeting alcoholic beverages.
The Oregon proposal also faces stiff opposition from the state's craft beer and wine makers, who worry it will adversely impact the state's home-grown beverage industry. Rep. Sanchez has been trying to pass similar legislation for years without success.
KING 5 reportsthat small brewery owners have voiced worries about their ability to absorb these additional costs while maintaining viable businesses. Many have indicated they're already operating on minimal profit margins and fear additional financial burdens could force closures throughout the industry.
The tax increases follow other recent challenges for Pacific Northwest brewers, including aluminum tariffs announced earlier this year that increased packaging costs, as previously reported by KING 5.
The Washington bill remains in committee, with lawmakers having until April 27 to finalize the state budget. In Oregon, Rep. Sanchez's proposal continues her years-long effort to establish alcohol retail taxes dedicated to youth substance abuse prevention.
KGW reached out to both Washington Representatives Davis and Fitzgibbon and have not received a response yet.
