Oregon Secretary Of State Certifies Corporate Tax Initiative Signatures | KUOW News and Information

Oregon Secretary Of State Certifies Corporate Tax Initiative Signatures

Jun 6, 2016
Originally published on June 6, 2016 7:24 pm

The Oregon Secretary of State announced Monday that the office has certified signatures that would send Initiative Petition 28 to voters in November.

IP 28 is a ballot measure that would tax corporate sales of more than $25 million as a way to fund education, health care and senior services.

Under the proposal, a 2.5 percent tax would be applied to all corporate sales crossing that $25 million threshold. Companies with more than $70 million in sales would pay between $1,105,001 and $8,055,001 in taxes.

Those increases would be applied in 2017.

A nonpartisan legislative analysis shows the initiative would raise some $6 billion in two-years. IP 28 would also greatly diversify Oregon's current revenue streams, with the increase being equal to a $600 tax per capita throughout the state.

Fifty companies would pay 51 percent of the tax.

Backers of the measure, including union leaders, say the money will generate much needed stable source of revenue for health care and education, which have historically struggled with funding in recession years.

But opponents — like Sandra McDonough of the Portland Business Alliance — say the initiative is a bad proposal.

"It needs to be defeated," McDonough said. "And what people need to remember is that it’s not a tax on business. This is a tax on sales, and consumers pay for sales."

Copyright 2016 Oregon Public Broadcasting. To see more, visit Oregon Public Broadcasting.