Oregon House lawmakers approve nicotine tax to fund wildfire prevention

The notion that the goods are smoke-free has a new meaning after Oregon House lawmakers approved a new fee on nicotine pouches on Monday to help fund wildfire prevention.

One component of a patchwork of policies aimed at raising roughly $45 million for wildfire prevention initiatives in the upcoming biennium is the tax on oral nicotine products, namely ZYN pouches.Additionally, 20% of Oregon’s rainy day savings account money will be diverted to fire prevention through the bill that lawmakers adopted on Monday.

House Bill 3940 would generate $45 million in revenue, but it is still a small portion of the funds that supporters thought lawmakers would commit to fighting wildfires on a regular basis. However, Democrats and Republicans acknowledged on the House floor Monday that it’s a start before passing it by a vote of 37-8, which is just above the three-fifths 36-member vote needed to raise any tax. Two Democrats voted against the bill, while a few Republicans joined Democrats in supporting it. The Senate is next to the measure.

The bill was carried on the floor by Echo Republican Representative Bobby Levy. She informed her colleagues MPs that a nonpartisan, varied group came together and that, in the end, the bill makes the best use of the resources that are easily accessible.

Oregonians living in rural and urban areas are not pitted against one another by this bill. According to Levy, it acknowledges that wildfire affects everyone. This measure offers a statewide answer to a statewide problem.

Legislators are likely to allocate more funds to combat wildfire in the budgets of the Oregon Department of Forestry and Office of the State Fire Marshal in addition to the $45 million the measure would raise.

Budget writers appear to have allocated at least $24 million for fire prevention costs and $150 million in potential emergency funding that might be used for responding to natural disasters, including major fires, according to end-of-session spending legislation released on Monday. The Department of Forestry might receive an additional $4 million for wildfire cameras and over $7 million to help rural landowners with the cost of fire protection if the budgets are approved.

But since that funding would only be available once, firefighting proponents might return in 2027 to request more funding.

There are a number of significant ideas in the measure, according to Springfield Democrat Rep. John Lively, who was a member of a work group on wildfire funding that convened prior to the start of the session. However, he pleaded with lawmakers to identify a long-term financial source.

We’re just getting started. According to Lively, there is still plenty to be done, particularly in terms of continuing funding for hardening and carrying out a lot of the other activities in addition to suppression. I implore the Legislature to continue its efforts in order to realize that if we simply stick with it, we can address and accomplish more.

A group of three dozen firemen, landowners, and environmentalists came up with the idea for four financing streams for wildfire prevention and mitigation, but the House Revenue Committee substantially changed it early in the session. Legislators proposed two of their own solutions instead of embracing those ones: taxing nicotine packs and taking interest out of the state’s rainy day fund.

Additionally, the bill includes a number of policy changes that fire advocates say are essential, such as modifying the fire protection fees paid by rural landowners, establishing home hardening grants, and permitting the state treasurer to lend funds to the state’s firefighting agencies to cover expenses while they await reimbursements from the federal and state governments.

Both of the proposed funding concepts received some opposition during a work session last week. Southern Oregon Representative Werner Reschke urged lawmakers to redirect up to 100% of the state’s rainy day fund interest, which could yield over $160 million every two years. Tina Kotek, the governor, backed the notion.

Additionally, doctor Sen. Lisa Reynolds opposed using the nicotine tax to combat wildfires. According to Reynolds, the levy, which starts at 65 cents a pack, won’t stop high school kids and others who are addicted to extremely addictive nicotine products from buying and using them. If counties outlaw flavored nicotine products, as Multnomah and Washington counties have attempted to do with voter support, she believes the financing stream may become unsustainable. Additionally, she believes that public health should be funded with the money earned.

Reynolds questioned whether we would run the risk of being so dependent on this source of money that it skews our future choices for public health.

Sami Edge writes for The Oregonian on politics and higher education. She may be contacted at (503) 260-3430 or atsedge@oregonian.com.

Latest local politics stories

Key Oregon Democrat resigns from transportation committee after complaints about his conduct
11 Oregon Republicans boycott floor session, call for reprimand of Democrat who raised voice at colleague

Who has died in 2025 Portland homicides
Lawmakers advance transportation package that could cost Oregonians more than $14 billion
Democratic Oregon House members celebrate Black drag performers, as nearly all Republicans boycott
What do you want to know about homelessness? Ask us