OR HB4146

Creates new "craft low-proof spirit distiller" endorsement for distilleries producing no more than 500,000 gallons annually of low-proof spirit beverages (alcoholic beverages containing distilled liquor mixed with nonalcoholic liquor, not exceeding 14% alcohol by volume, packaged in containers up to 375 milliliters)

Requires Oregon Liquor and Cannabis Commission to issue low-proof spirit beverage endorsements to off-premises sales license holders with premises greater than 4,000 square feet, charging a $2,500 nonrefundable fee per premises

Imposes privilege tax on low-proof spirit beverages at $7 per gallon for craft distillers and $11 per gallon for non-craft producers, with annual cost-of-living adjustments capped at 1% after January 1, 2030

Establishes Craft Brewery and Distillery Marketing and Economic Development Grant Program Fund funded by endorsement fees to support business development, innovation projects, and marketing efforts in the craft brewery and distillery industries

Modifies OLCC revenue distribution so amounts exceeding $3 million monthly are allocated with 82% going to Department of Justice for victim services funding, with remaining portions to cities (8.5%), General Fund (7%), and counties (2.5%)