Oregon lawmakers want to ease kombucha regulations

Oregon lawmakers Sen. Ron Wyden (D) and Rep. Earl Blumenauer (D) reintroduced legislation Thursday which would update federal alcohol taxes and regulations on the production and sale of kombucha nationally.

“Kombucha’s growth in Oregon generates jobs and small business growth throughout our state while creating fans everywhere of this tasty beverage,” Wyden said in a statement.

“Modernizing outdated taxes and regulations on kombucha is a must so this industry can continue to build on its achievements.”

{mosads}“Kombucha is one the fastest growing beverage industries in the world, with an expected economic impact of $1.2 billion by 2020,” Blumenauer said. “This legislation is a common sense solution that would lift unnecessary tax burdens and instead support emerging small businesses in Oregon and across the country.”

The Keeping Our Manufacturers from Being Unfairly taxed while Championing Health Act, or KOMBUCHA, would exempt the production and sale of the drink from regulations on alcohol as long as it remains below 1.25 percent alcohol-by-volume (ABV). Current regulations only provide exemptions up to 0.5 ABV.

The mix of tea, water and bacterias used to make kombucha contains trace amounts of alcohol because of its fermentation process, which subjects it to the same regulations as other alcoholic beverages.

Colorado lawmakers previously introduced the legislation in 2017.