Taxes & Revenue
Budget Discussion: The “provider tax” passed out of the House June 15. As drafted, the package will raise $550 million+ with additional federal matching funds and goes a long way towards preventing cuts to the state’s Medicaid program (and the $1.4 billion gap). The House also passed out a $2.2 billion Oregon Health Authority budget which represents the first major general fund budget to pass the House. The $8.2 billion K-12 state school fund budget is awaiting a vote on the House floor. We do not anticipate the Oregon Department of Human Services/Intellectual and Developmental Disabilities (IDD) budget to be discussed in the sub-committee until late June.
House Bill (HB) 2830 – “Revenue Reform and Education Sustainability Act” / Gross-Receipts Commercial Activity Tax
The Joint Tax Reform Committee held public hearings this week on the latest tax proposal, introduced by Senator Hass and Speaker Kotek. The bill would require a three-fifths approval – at least one Republican in Senate & House. At this time, the votes are not there to support passage.
-3 Amendments (introduced 6/15):
- Eliminates Corporate Income Tax after 2019
- Corporations pay flat $250 for the first $3 million of sales
- CAT kicks in 2019: Tax on Total Sales Minus $3 million – taxed at below rate:
- Includes all business entities
- Rates applied to receipts/sales above $3 million:
- .75 percent for services
- .35 percent for retail trade
- .25 percent for wholesale
- .15 percent for natural resources
- .48 percent for all other
- New Personal Income Tax Rate Structure:
- Increases corporate tax rate effective 1-1-17 to 8 percent and 9 percent
- Repeals special pass through rate 1-1-17
- -3 Proposal would raise:
- $898 million 17-19
- $1.191 billion 19-21
- $1.465 billion 21-23
- $1.719 billion 23-25
ACTION: No action taken. Work session scheduled for June 19th.
Senate Bill (SB) 256 – Willamette Falls Locks Commission
The Joint Transportation & Economic Development Subcommittee held a public hearing for SB 256, which Establishes Willamette Falls Locks Commission as policy-making and advisory body for issues relating to repair, reopening, operation, maintenance and future transfer of ownership of navigational canal and locks. The committee received supportive testimony from Senator Devlin, Senator Hansell, Former Governor Roberts, Former Congresswoman Hooley, Clackamas County Commissioner Schrader, Confederated Tribes of Grand Ronde, Umatilla and Yakama Nation. Click here to view AOC’s testimony.
ACTION: No action taken.
SB 339-A – Small Scale Renewable Fix-Bill
Caps electricity generated by any single biomass facility that may be used to meet requirement that certain percent of electricity in this state be electricity generated by small-scale renewable energy projects or biomass facilities.
ACTION: SB 339 passed the House with 41 YES votes, nine NO votes (Barreto, Hayden, Heard, Nearman, Parrish, Post, Reschke, Sprenger, Wilson) and 10 members excused. The bill now heads to the Governor’s desk for her signature.
SB 936 – SIP in Rural Areas
Increases taxable portion of projects located in rural areas eligible for property tax exemption under Strategic Investment Program (SIP).
ACTION: SB 936 passed the House with unanimously with 56 YES votes and four members excused. The bill now heads to the Governor’s desk for her signature.
Click here to view AOC’s letter in support of 2.5 percent video lottery allocation.
Contributed by: Amanda Dalton | AOC Consultant