REGULATORY SUCCESSES

The Oregon Winegrowers Association enjoyed a successful 2007 Oregon legislative session, winning passage of all of its top priority bills, including ones dealing with direct shipment and self-distribution of wine. The legislature also approved funding for the newly created Oregon Wine Institute and inserted OWA’s vineyard land protection language in the bill that became Measure 49, which voters approved in November.

Here is a more detailed summary:

Surety Bonds (House Bill 2486). OWA guided through legislation that gives the Oregon Liquor Control Commission discretion to excuse small Oregon wineries from annual surety bonds, which are intended to cover unpaid wine privilege taxes. Under the measure, the OLCC can waive the surety bond requirement for small wineries that haven’t paid the privilege tax and aren’t likely to incur the tax in a particular year, which saves a small winery the cost of the bond.

Warehouse Privilege (House Bill 2487). OWA persuaded lawmakers to adopt legislation that clarifies that warehouse licensees can provide full service to persons holding a grower sales privilege license. This eliminated an unintended oversight that prevented wine warehouses to fulfill direct shipment orders for vineyard operators selling wine under their own label.

Temporary Sales Privilege (House Bill 2168). OWA worked with the Oregon Liquor Control Commission on language that clarifies organizations consisting primarily of Oregon wineries and vineyard operators qualify to obtain a temporary sales license. The direct shipment bill was worded to grant holders of temporary sales licenses the privilege of selling and sending wine directly to consumers in Oregon and other states.

Viticultural Area Signage.  OWA secured a commitment from the Oregon Department of Transportation (ODOT) to amend its rules to create viticultural area signs under the state’s historic and cultural sign program. These brown highway signs may be used by designated Oregon viticultural organizations to advertise their region to motorists. The commitment came as part of a larger debate over how ODOT regulates highway signs pursuant to a court ruling prohibiting the agency from regulating signs based on content.

Corporate Minimum Tax. OWA participated in efforts that blocked legislative approval of what amounted to a gross receipts tax on Oregon businesses. A change in the corporate minimum tax was originally tied to creation of a state rainy day fund, but the minimum tax was dropped because of strong business opposition. Followup efforts to impose a New Hampshire-style value-added tax on Oregon businesses also failed.

Inheritance Tax. OWA lent its support to a successful effort to increase the exemption from state inheritance tax to $7.5 million for Oregon businesses based on natural resources such as farms. The 2008 supplemental legislative session is expected to clarify aspects of the inheritance tax proposal.