House Bill 2875 – Imposes excise tax on coffee beans and ground coffee

House Bill 2875 - Imposes excise tax on coffee beans and ground coffee

House Bill 2875 – Imposes excise tax on coffee beans and ground coffee.

We learned on Friday, February 10th, that there is a bill in the House of Representatives that would impose a tax on coffee, specifically coffee beans and ground coffee used to make “specialty coffee beverages”. These include any beverage made with espresso prepared for individual consumption.

The excise tax is five cents ($.05) per pound imposed on the sale at wholesale of coffee beans and ground coffee. It is imposed on coffee beans and ground coffee used to prepare specialty coffee beverages for sale at retail if the tax has not been paid at wholesale. The tax would not apply to any retail seller that uses less than 500 pounds of coffee per calendar year.

The tax revenue will go to the Alternative Education Sustainability Fund, Oregon National Guard Youth Challenge (through the Oregon Military Department) and the Department of Education.

Read HB2875 Details below.

Imposes excise tax on coffee beans and ground coffee. Requires Department of Revenue to deposit excise tax amounts in Alternative Education Sustainability Fund. Establishes Alternative Education Sustainability Fund. Directs Oregon Military Department to allocate 50 percent of funds to
Oregon National Guard Youth Challenge Program for operations and capital construction. Directs Department of Education to use 50 percent of funds to make grants to alternative high school programs for operations and capital construction and, with approval of Governor, to primary schools
for primary reading programs. Establishes Alternative Education Sustainability Board to make recommendations for distributions and grant awards.
Becomes operative July 1, 2018. Takes effect on 91st day following adjournment sine die. Read more about the bill here!