Oregon would allow approved stores to sell packaged spirit drinks

Approved stores and distillers would be allowed to sell these drinks for consumption away from their premises. Stores must exceed 4,000 square feet. Distillers may produce no more than 500,000 gallons of these drinks yearly. Drinks must mix spirits with a nonalcoholic drink, contain no more than 14% alcohol, and use containers no larger than 375 milliliters. Stores would need an off-premises sales license, special approval, and a nonrefundable $2,500 application fee per location. Store sales and deliveries would follow wine rules. Shipping directly to Oregon residents for personal use would also require a direct shipper permit. Distillers would need special approval. Direct deliveries to approved stores would require payment equal to the direct-to-retailer permit fee. If enacted, these sales provisions would begin September 1, 2026.

Manufacturers and importing distributors would pay a tax for each gallon of these drinks. The $7 rate covers drinks made or imported by distillers producing up to 500,000 gallons yearly; otherwise, the rate is $11. Covered drinks mix spirits with a nonalcoholic drink, contain up to 14% alcohol, and use containers up to 375 milliliters. Drinks would be taxed only once. Exemptions cover exports, sales to the Oregon Liquor and Cannabis Commission, free drinks consumed at distilleries, sales to or by specified military organizations, and drinks the commission finds unfit or unsalable. Rates would use an annual consumer-price calculation. Increases calculated on or after January 1, 2030, could not exceed 1%. Covered businesses would report quantities and keep records. Unpaid taxes could lead to penalties and property seizure. The tax would not require a bond guaranteeing payment. Licensed sellers could exclude federal and state taxes on these drinks from receipts counted for Oregon's business activity tax. If enacted, these provisions would apply to drink distributions on or after January 1, 2027. The annual tax-adjustment section specifies a January 1, 2026, start.

The Oregon Liquor and Cannabis Commission would run grants funded by store application fees. Grants would support business development, innovation, product development, and eligible marketing in Oregon's craft brewery and distillery industries. The commission would set grant eligibility and application rules. Funded marketing must promote craft beer or qualifying craft spirit drinks. It could not promote specific brands or exclusively promote one brewery's or distillery's products. If enacted, the grant program and its fund would begin September 1, 2026.

The Oregon Liquor and Cannabis Commission would divide available monthly liquor account money using a $3 million threshold. The formula covers money available for distribution after the commission holds back money needed to pay outstanding obligations. Of the first $3 million each month, 56% would go to the state's general spending fund, with half of that share for eligible victim services. Cities would receive 34% and counties 10%. Above $3 million, victim services would receive 82%, cities 8.5%, the state's general spending fund 7%, and counties 2.5%. Minimum local payments would depend on 1966–1967 payments and population changes, with needed supplements drawn from the state's share of the first $3 million. Money from the commission's per-bottle surcharge would go to the state's general spending fund. If enacted, Section 31 ties this formula's application to distributions of low-proof spirit drinks on or after January 1, 2027.