Measure 118 Would Implement a Massive Tax on Sales
Measure 118 is a gross receipts tax on businesses with more than $25 million in annual Oregon sales. In other words, it’s a tax on sales – not profits or income. That means businesses in Oregon would be forced to 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. Measure 118 would force hundreds of local businesses to raise their prices, cut jobs, or shut down completely.
Measure 118 Would Impose a “Tax on a Tax”
Measure 118 would add a costly new 3% tax on sales that could apply at every step of the supply chain in Oregon. By the time an Oregon product goes from raw materials to a manufacturer to a packaging company to a distributor and then to a retailer, it may have been taxed five times before it finally reaches the consumer – making it far more costly than a typical sales tax.
Measure 118 Would Mean Higher Consumer Prices – At the Worst Possible Time
By implementing the largest tax increase in Oregon history, Measure 118 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.
Measure 118 comes at the worst possible time, when the cost of living is already out of control. Reports show that a typical Oregon household must spend $11,000 more each year to maintain the same standard of living they had in 2021. Measure 118 would increase costs even further.
Source: Oregon Inflation Report, U.S. Congress Joint Economic Committee, May 2024
Measure 118 (also known as Initiative 17): Adds 3% tax on corporate sales above $25 million and distributes that money to residents, including dependents or wards who have resided in the state for at least 200 days.
“Proponents of IP-17 want to use the revenue from the tax increase to fund an annual rebate check, which they estimate at $750 per person on the assumption that the tax will raise at least $3 billion in additional revenue. That might sound good. But if it raises the will raise the cost of goods, it will drive jobs and economic activity out of state and puts Oregon-based businesses at a massive disadvantage with their out-of-state competitors, an awful deal for Oregonians.” — Jared Walczak
Currently, the state levies a 7.6% corporate income tax on Oregon C corporations and a .57% gross receipts tax.
IMPORTANT TO NOTE:
The rebate would go to any “Oregon resident” (ie; a person who has lived here for 200 days). Acceptable identification documentation to receive the rebate is listed in the measure text as:
“Department of Revenue shall require the individual to provide, for the individual and for any claimed dependents and wards, the Social Security number(s) assigned by the US Social Security Admin., the Individual Taxpayer Identification number(s) assigned by the United States Internal Revenue Service, OR a written statement that the individual, dependent or ward has not been assigned such number.
(b) Except as provided in paragraph (4)(c) of this section, acceptable alternative documents to prove eligibility include but are not limited to the following for the individual and separately for any claimed dependent or ward:
(A) An unexpired valid passport from the person’s country of citizenship;
(B) An unexpired valid consular identification document issued by the consulate of the person’s country of citizenship, if the department determines that the procedure used in issuing the consular identification document is sufficient to prove the person’s identity;
(C) A driver license, driver permit or identification card issued by this state that is unexpired or expired not more than 13 years from the date on which the individual claims the rebate; or
(D) A driver license, driver permit or identification card issued by another state that is unexpired or expired not more than one year from the date on which the individual claims the rebate.”
E. Werner Reschke – “I’ll Give You 2 Shiny Nickels for that Old Quarter!”
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A “yes” vote supports increasing the corporate minimum tax on sales exceeding $25 million by 3%, removing the minimum tax cap, and distributing increased revenue to any person who spends more than 200 days in the state.
A “NO” vote opposes increasing the corporate minimum tax on sales exceeding $25 million by 3%, removing the minimum tax cap, and distributing increased revenue to any person who spends more than 200 days in the state.
DCRCC Recommends a NO Vote.
Who’s Opposing this Measure?
- Gov. Tina Kotek (D)
- State Senate Majority Leader Kathleen Taylor (D)
- State Senate President Rob Wagner (D)
- State House Majority Leader Ben Bowman
- State House Speaker Julie Fahey (D)
- Koch Companies
- Oregon Business & Industry
- Portland Metro Chamber
- Tax Fairness Oregon
- Western States Petroleum
Who’s Supporting this Measure?
- Oregon Progressive Party
- Oregon Working Families Party
- Pacific Green Party
- Progressive Democrats of
