Oregon legislature considers coffee tax, officials say

PORTLAND -- The Oregon legislature is considering a new bill that would tax coffee beans and ground coffee, officials tell CBS affiliate KOIN.

The bill, currently in the House, would impose a tax of five cents per pound on wholesale coffee, KOIN reports.

The legislature is proposing using funds raised from the new tax to establish a “Alternative Education Sustainability Fund,” which Willamette Week reports will be capital construction and primary school reading programs.

According to KOIN, half the funds will toward the Oregon Military Department to be used in the Oregon National Guard Youth Challenge Program.

If passed, the bill would go into effect on July 1, 2018, KOIN reports. The bill did not mention an estimate of how much revenue this new tax would provide, but Oregon is facing a $1.8 billion budget gap.

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• Oregon