Oregon’s 5-Cent Bottle Tax Proposal to Bolster Wildfire Prevention Awaits Public Input Until 3 PM Today
Public testimony about a 5-cent non-refundable tax on beverage containers to help fund wildfire prevention closes today (Saturday) at 3 p.m.
Proposed 5-cent Non-refundable Tax on Bottles and Cans
The suggested tax will be applied on top of the 10-cent deposit required for bottles and cans. However, unlike the deposit, the 5-cent tax is non-refundable.
Landowners and the Timber Industry Will Also Contribute to Wildfire Prevention Income Streams
However, bottle tax is not the only income stream that the bill will encompass for wildfire prevention funding, with its tentacles stretching into several consumer-sensitive areas.
Landowners will have to pay their part with an inflation-related increase in the minimum annual fee payable for fire protection services.
All timber harvested in Oregon will be taxed and annually adjusted for inflation. The existing fire-related harvest tax will be increased from 62.5 cents to $1 per 1,000 ft of board.
A new Large Wildfire Fund under the State Forestry Department will be created, with half of the revenue from a 5-cent tax on beverage containers allocated to it and the other half going to the State Fire Marshal Mobilization Fund.
Additional funding proposals include allocating 50% of insurance retaliatory tax revenue, transferring 0.5% of general fund appropriations every two years, and directing 50% of the state’s Rainy Day Fund.
The 10-cent deposit has been successful, with a redemption rate last year of 90%, according to the Oregon Beverage Recycling Cooperative. However, the co-operative is concerned that introducing a 5-cent tax to the Bottle Bill could impact its ability to provide services.
The Recycling Cooperative is concerned that the tax will reduce consumer convenience, forcing a return to a hand-count container system in retail stores.
The bill has passed the House Committee on Climate, Energy, and Environment and has now been referred to the House Revenue Committee.