Union County Democrats Endorse Oregon Measure 97...

Union County Democratic Party endorses Oregon Ballot Measure 97…

The Oregon Business Tax Increase Initiative, also known as Measure 97, is on the November 8, 2016, ballot in Oregon as an initiated state statute.

A "yes" vote is a vote in favor of increasing certain corporate taxes by establishing a 2.5 percent tax on corporate gross sales that exceed $25 million.

A "no" vote is a vote against establishing a 2.5 percent tax on corporate gross sales that exceed $25 million and retaining the existing corporate tax structure.

Specifically, the measure would establish a minimum tax of $30,000 plus 2.5 percent of gross sales that exceed $25 million. It would remove the current minimum gross sales tax rate, which is around 0.1 percent and capped at $100,000. Corporations with a high enough income are taxed according to their income in lieu of the gross sales tax. The income tax rate for qualifying businesses is 6.6 percent of taxable income up to $1 million and 7.6 percent of taxable income above $1 million. These rates apply when the result is greater than the minimum sales-based tax. The income tax on high-income corporations would be retained if the initiative passed. According to the Oregon Legislative Revenue Office, for example, a corporation with less than $20 million in sales would not be affected by the change. A corporation with $70 million dollars in sales would see a 23-fold increase in its tax obligation.

Ballot title and summary The certified ballot title and summary are as follows: “Increases corporate minimum tax when sales exceed $25 million; funds education, healthcare, senior services

Result of 'Yes' Vote: 'Yes' vote increases corporate minimum tax when sales exceed $25 million; removes tax limit; exempts "benefit companies"; increased revenue funds education, healthcare, senior services.

Result of 'No' Vote: 'No' vote retains existing corporate minimum tax rates based on Oregon sales; tax limited to $100,000; revenue not dedicated to education, healthcare, senior services.

Summary: Current law requires each corporation or affiliated group of corporations filing a federal tax return to pay annual minimum tax; amount of tax is determined by tax bracket corresponding to amount of corporation's Oregon sales; corporations with sales of 100 million or more pay $100,000. Measure increases annual minimum tax on corporations with Oregon sales of more than $25 million; imposes minimum tax of $30,001 plus 2.5% of amount of sales above $25 million; eliminates tax cap; benefit companies (business entities that create public benefit) taxed under current law. Applies to tax years beginning on/after January 1, 2017. Revenue from tax increase goes to: public education (early childhood through grade 12); healthcare; services for senior citizens.”