Tag: Oregon Liquor Control Commission

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OLCC Provides a Silver Lining in COVID-19 Recovery

By Vlad Yurlov

Alcohol-lovers may have a reason for a toast. Oregon’s Liquor Control Commission is taking steps to decrease regulations on sellers, thereby expanding economic opportunity in the food and beverage industry, which was hit particularly hard by the COVID-19 crisis.

Alcohol sales are tightly controlled by the OLCC, which imposes stringent rules on individuals and businesses before, during, and after alcohol purchases. When restaurants and bars had to close their doors to on-site service due to Oregon’s coronavirus response, the OLCC temporarily relaxed some rules regarding alcohol delivery. Because these rules are temporary, though, Oregonians’ easier access to wine and microbrews could once again be limited before this fall.

Recently, the OLCC has begun a process to make the temporary relaxation permanent. These changes would allow increased flexibility in how alcohol can be delivered to customers and increase the hours during which alcohol may be purchased. The changes raise the question of why such burdensome restrictions were imposed in the first place.

When Oregon has to close a door, we can open a window. Let’s keep economic freedom for Oregon businesses and customers at the forefront of Oregon’s rule-making process.

Vlad Yurlov is a Policy Analyst at Cascade Policy Institute, Oregon’s free market public policy research center.

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Oregon Distilleries Deserve Better

By Helen Cook

How much would you be willing to pay in taxes for your local business?

Thirty-three percent of total sales from Oregon distilleries currently goes to the Oregon Liquor Control Commission. This means, on average, that the state makes a greater profit from tasting room sales than the distillers making the product. In comparison, beer and wine crafters remit 0% of tasting room sales to the state.

Oregon is a “Liquor Control State.” This means that all liquor is owned by the state, entitling it to a certain percentage of each liquor sale. The revenue that distillers do receive from tasting room sales is actually a commission for selling the state’s liquor.

Distilleries are struggling to stay afloat because of this control system. In fact, Cannon Beach Distillery recently decided to close rather than pay remittance to the state. Others are worried they might have to do likewise.

Granting distillery tasting rooms the same privileges as the beer and wine industries could be what keeps craft distilleries in Oregon from disappearing. Oregon distilleries deserve better.

Helen Cook is a Research Associate at Cascade Policy Institute, Oregon’s free market public policy research organization.

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