Rep. Bobby Levy, R-Echo, is a lead House sponsor for House Bill 3940, a bill to tax oral nicotine products. Here she is seen at the Oregon Legislature on Feb. 12, 2024. (Jordan Gale/Oregon Capital Chronicle)

The Oregon House in a 37-8 vote on 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.

Chief bill sponsor Rep. Bobby Levy, R-Echo, said the bill represents over a year of diligent work, collaboration and commitment to finding a sustainable path forward for wildfire prevention and response, Levy said.

“(The bill) recognizes that the cost of wildfires is too great to ignore — and that we cannot continue to fund our response efforts with one-time dollars and last-minute band-aids,” Levy said. “Our goal was simple, but vital: create a sustainable, long-term funding mechanism for wildfire prevention and suppression that protects both the environment and the people who call Oregon home.”

Rep. Pam Marsh, D-Ashland, said the bill is a 21st-century solution to wildfire mitigation.

“This bill is about prioritizing wildfire mitigation, making our communities safer and building a funding system that is more sustainable,” Marsh said. “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 home owners 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.”

Editor’s note: This story was updated to include a quote from chief bill sponsor Rep. Bobby Levy, R-Echo.