[5]By Oregon Business & Industry [6]
What happened: On April 1, the House Committee on Climate, Energy and Environment conducted a public hearing on HB 3940 [7], which would assess a 5-cent surcharge (in effect, a tax) on each beverage container sold in Oregon. The revenue would be used for wildfire mitigation and response. OBI Policy Director and Counsel Derek Sangston submitted testimony in opposition [8].
Problems with the bill: Oregon already collects a 10-cent deposit on beverage containers as required by the state’s Bottle Bill program, and the infrastructure developed to manage the Bottle Bill is ill-equipped to collect and remit an additional levy. The bill also would impose a new tax on Oregonians, who ultimately would pay the 5-cent surcharge. In 2024, Oregon’s cost of living was the nation’s 14th highest, according to the Missouri Economic Research and Information Center [9], and the state’s grocery costs were the nation’s fifth highest, behind only Maryland, Alaska, California and Hawaii. Taxing beverages, which have no connection to wildfires, would make living and doing business in Oregon more expensive, further eroding its competitiveness.
Learn more: Read Derek’s testimony here [8] and read OBI’s Oregon Competitiveness Agenda here [10] to learn how the state can improve its business climate and affordability.