C. Oregon liquor licensees react to fees doubling

(Update: More from OLCC; reaction from area licensees)

Annual fees for Oregon Liquor Control Commission liquor licenses are set to double this fall, to more closely align with costs and with what other states charge, the agency said Monday.

With action approved in the 2019 legislative session, the fees for 19 common license types – affecting stores, bars, restaurants, breweries and wineries – will double.

“The increase will put Oregon’s fees more in line with national averages for liquor license fees and will more closely reflect the true cost of license administration,” the agency said in a news release.

The annual fees for OLCC liquor licenses were first set back in 1949, remaining largely unchanged since. And while some things improve with age – like a fine wine or even a great whiskey – the fees for annual licenses did not adjust as costs increased over the years.

NewsChannel 21 spoke to OLCC Public Information Officer Mat Van Sickle about the changes on Monday.

“When we’re looking at something that is 70 years old, we have to look back and then figure out, ‘Okay, what were my grandparents paying for gas 70 years ago? What did they pay for bread and for milk? And have those costs changed over the years?’ Yes they have. And our fees haven’t, which is a great story,” he said.

“But at the same time, the standard of living has gone up, costs go up, you know, the standard increase of everything goes up over time,” Van Sickle said. “And so we have to account for those fees and be able to actually deliver those services at today’s dollars.”

OLCC has more than 18,000 liquor licensees throughout the state, a number that has an average annual growth rate of over 450 new licensees per year for the last 10 years. This steady annual growth in the number of licensees means that with each new license or renewal, there are additional costs in processing, inspection and enforcement.

“The fee doesn’t adjust to match inflation, and as such, didn’t cover the cost of the work being performed,” said Steve Marks, OLCC director. “We appreciate the action of the Legislature in the passage of Senate Bill 248, which authorized the fee increase. We are now able to true-up our fees to be more in line with actual costs, while bringing us in line or below other states.”

The effective date of the increase is Oct. 1 for all new or renewing licensees. Some licensees will start seeing the fee increase in license renewal packets mailed this month for October renewals.

The annual fee for a Full On-Premises Commercial License type, common for restaurants and bars, is currently $400, and will increase to $800 after doubling. A Brewery Public House License and a Winery license, both currently at $250, will move to $500 after doubling. These increases place Oregon roughly in the middle to low end of liquor license fees nationally for these license types.

Several managers and owners of bars and restaurants around Bend weighed in on the changes.

Many said they had not yet heard about the increases.

One manager said he doesn’t see it having an impact on established businesses, but could see it having an impact on smaller businesses and startups.

Chris Hakala, general manager of Immersion Brewing, spoke to NewsChannel 21 about the changes, saying it shouldn’t have an effect on their restaurant.

“I mean, the fees are still pretty minimal,” Hakala said. “For the amount of beer and wine that we sell, and liquor, it’s really just like a little dime in the bucket, it’s not going to be a major, major deal for us.”

Hakala said he sees this as a positive thing for the OLCC, and feels it’s going to be beneficial.

He added that since the fees have not changed for the past 70 years, it’s probably time for a change.

It’s estimated that the license fee increase will raise $9.2 million for 2019-21 biennium. The additional revenue will go to support OLCC operations and compliance activities.