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How Philly could top Portland in the battle for America's best beer city
The Web site for the award-winning alternative weekly, the Philadelphia City Paper.
How Philly could top Portland in the battle for America's best beer city
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Oregon brewers are furious over five state legislators' proposal to increase the excise tax on beer, which has not been raised in 32 years. The proposal would increase state tax on each barrel of beer produced 1,900 percent; the current rate of approximately $2 per barrel would go up to almost $50.
KGW, a Portland local news station, reports that brewers are claiming the tax hike will cripple their businesses and cause job losses at breweries. Legislators are seeking to bridge budget deficits, with the proceeds from the tax specifically funding treatment for alcohol abuse. KGW writer Eric Adams:
The bill's language defends the tax by arguing alcoholism and “untreated substance abuse” costs the state $4.15 billion in lost earnings as well as more than $8 million for health care and nearly $1 billion in law enforcement-related expenditures.
Oregon ranks 49th among states for its malt beverage taxation rate, which brewers claim helped forge the hospitable climate for the small brewing businesses that Oregon has become famous for. Adams spoke with a local Portland microbrewery owner.
Laurelwood Public House & Brewing Co. owner Mike De Kalb said the tax may sound like a good idea in this economic climate, but he believes it would cost jobs and not raise enough new tax revenue to justify the increase... De Kalb said Oregon would potentially lose its prominence as a craft-brew destination and that some small breweries could potentially go out of business. He said Laurelwood could possibly face job cuts as well. Prior versions of the beer tax bill have exempted small breweries but this one does not, he added.
DeKalb goes on to state that the tax would increase the average price of a pint from $4.50 to $6. Rep. Bill Cannon, one of the bill's sponsors, counters that his office had calculated the increase to the consumer at just 15 cents. Another brewery owner squashed that notion.
But Kurt Widmer of Widmer brewing told KGW that in order to keep profit margins constant, he'd increase his price to distributors, who in turn would likely increase prices to retailers, making the 15 cent per class estimate unrealistic.
Oregon is home to hundreds of breweries, both large and prominent, like Rogue, and tiny micro-breweries and brewpubs. The tax seems not only unfair, but absolutely nonsensical. Are alcoholics buying micro-brews exclusively? Does every gutter drunk clutch a bottle produced at home in Oregon? Of course not. State legislators are looking to fix their hopelessly red budget by grabbing at one of Oregon's most successful local industries, and cripple them in the bargain.
"Sin taxes" have long been a favorite of legislators, who can stand on the moral high ground that they are protecting the citizenry from their own vices and earning the state revenue at the same time. Increasing a tax that has been untouched for 32 years in reasonable -- but not by 1,900 percent. One wonders who lobbied for this stratospheric hike. If Oregon's legislature passes this dramatically increased excise tax on each barrel of beer brewed in their state, the fallout should quickly vault Philadelphia to uncontested status at America's best beer city. Too bad such a victory would taste so bitter.
[...] at 18th and Chestnut• Hardena to host Newbold Neighbors Association fundraising dinner Feb. 19• How Philly could top Portland in the battle for America's best beer city• Where'd I eat last night?• The citrus jewel: Kumquats• Happy Rooster adding [...]
I live in Portland. You could increase the beer tax 19 million percent and Philly still wouldn't top Portland as a beer city. Besides, we're not even the top city anymore. Sure, we have more pubs than most of the rest of the country combined, but if you want phenomenal diversity go to San Diego, or drink Colorado beers.
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