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The Oregon House in a 37-8 vote Monday passed a bill to create a new tax on oral nicotine products and use those funds to combat wildfires.
House Bill 3940 would impose a $0.65 tax on nicotine pouches with 20 units or less, with an additional 3.25-cent tax for each additional unit, rounded to the nearest whole cent beginning Jan. 1.
A third of the funds raised from the tax would go to the Landscape Resiliency Fund for landscape restoration projects and fuel reduction projects on public and private lands. The remaining funds would go to the Community Risk Reduction Fund, which is managed by the Oregon State Fire Marshal to provide funds to local governments to reduce fire risk. Legislative records show the oral nicotine tax would raise approximately $14.3 million for these funds over the next two years.
“Oregon is facing a new era of wildfire risk, and we need 21st-century solutions,” said Rep. Pam Marsh, D-Ashland. “This bill is about prioritizing wildfire mitigation, making our communities safer and building a funding system that is more sustainable. We’re investing in resilience and taking real steps to reduce the long-term human and economic toll of wildfire.”
The bill also creates a grant program called the Wildfire Prepared Structure Program, which would help homeowners update their homes to meet fire safety standards. It would prioritize low-income homeowners and those in fire-prone areas.
The bill now heads to the Senate for consideration. The bill must receive a Senate vote before taking effect. The Oregon Legislature must adjourn on June 29.
“In Central Oregon, wildfire smoke is a leading cause of public health risk during the summer months,” Sen. Anthony Broadman, D-Bend, said in a press release. “Oregon has a long history of taxing nicotine products to support public health initiatives, and it just makes sense to use revenue associated with these products to help keep Oregonians safe and healthy.”
