Ballot Measures

Every Oregonian will get a rebate of about $1,600. The rebate will go to every person living in Oregon for more than 200 days, including minors and dependents. According to the State of Oregon’s analysis of fiscal impact, the median amount of the rebate in the first three years is $1,605.

Measure 118 would implement the largest tax increase in Oregon history, hurting Oregon’s economy and driving up costs for Oregon businesses and consumers. It would increase prices for everyday goods and services that Oregonians rely on – such as food, medicine, and electricity. That would especially hurt those who can least afford it, such as seniors and people living on fixed incomes.

Oregonians can claim the rebate as cash or as a fully refundable tax credit for every member of a household. If less Oregon tax is owed than the rebate, cash is refunded to the filer. According to the Legislative Revenue Office (LRO) households making less than $40,000 won’t have any Oregon tax liability whatsoever if Measure 118 passes.

Measure 118 is a gross receipts tax on businesses with more than $25 million in annual Oregon sales. Thus it is a tax on sales – not profits or income. This means qualifying businesses would pay this new $6.8 Billion tax on the goods and services they provide, regardless of whether they make a large profit, make a small profit, or are losing money.

Some of the financial burden on low-income Oregonians would be relieved. It will require large corporations to pay their fair share in taxes. Some giant corporations pay essentially zero state income tax.

Measure 118’s “tax on a tax” would make Oregon products more expensive, make Oregon companies less competitive, and increase prices on Oregon consumers.

According to the State of Oregon’s analysis of fiscal impact, Measure 118 will also help balance the playing field between small local businesses that currently pay relatively more in taxes than the huge, mostly out-of-state corporations that will pay the new 3% after whatever revenue they make above $25 million in Oregon (for giant corporations, their first $25 million of revenue remains basically tax-free).

Oregon’s corporate tax ranking is the second worst in the country. Measure 118 would make local Oregon businesses less competitive with out-of-state companies, drive more jobs and revenue out of the state, and hurt our local economies.  Other unexpected consequences may arise due to lack of thorough evaluation of the implications of the measure. If passed, correction may be difficult. 

Measure 118 would increase the minimum corporate tax rate after $25 million of in-state revenue by 3%. Only about 2,000 of Oregon’s 64,000 corporations will see a tax increase. Most of the 2000 are large multinational corporations and all but a handful of them are based outside of Oregon.

Measure 118 would add a costly new 3% tax on sales at every step in the production and selling process in Oregon, making it far more costly than a typical sales tax.

Multinational corporations like Comcast are not going to stop operating in Oregon because they have to pay slightly more in taxes. More money in the pocket of Oregonians will boost our economy and mean more jobs, opportunities and taxable revenue.

Measure 118 attempts to redress economic inequity, but current law means it could hurt other state-funded programs. The full scope of ramifications may not be known at this time. A diverse coalition of nearly 50 lawmakers, more than 200 companies and business interest groups and also Governor Tina Kotek have come out in opposition of the measure.

Endorsed by Pacific Green Party, United Auto Workers, Economic Justice Action Group and others.

Opposed by Black Business Association of Oregon, Corvallis Chamber of Commerce, National Association of Social Workers (Oregon Chapter), State Senator Sarah Gelser Blouin and others.