SALEM, Ore. — Oregon is on track to potentially become the third state in the nation to raise its tobacco age minimum to 21 following Thursday’s vote by Senate lawmakers.
Senate Bill 754 cleared the chamber in a 19-8 vote and now heads to the House. The measure would raise the legal age in Oregon for possessing and buying tobacco and nicotine products from 18 to 21 beginning next year, following the leads of Hawaii in 2015 and California in 2016.
State budget officials say the Oregon proposal would drop tax revenues by an estimated $1.76 million — less than 2 percent of total tobacco revenues — in the upcoming 2017-19 budget, which has a $1.6 billion projected shortfall. Total tobacco revenues account for approximately $134 million of the total $19.6 billion expected gross revenue to the state’s general fund for the upcoming biennium.
Any potential revenue losses, however, could be recovered through other proposals currently being considered in Salem to raise the state’s tax rates on tobacco products. The Oregon Health Authority also says the measure could take a bite out of the $2.5 billion in tobacco-related medical costs that burden taxpayers every year.