Community & Economic Development Update – Week of June 9

Today marks the end of week 19 of the Legislative Session. Below is a review of the week.

Week in Review

Taxes & Revenue

  • Ways and Means just passed $8.2 billion K-12 budget (11 percent increase from last budget)
  • Kicker will likely kick:
    • PERSONAL: There is a personal kicker of $407.9 million projected for 2017. Not a certainty YET.
    • CORPORATE: $75.5 million of corporate tax revenue is projected to be dedicated to K-12 education spending in 2017-19.
  • House Bill (HB) 2019 – Corporate Disclosure (still alive)
  • House/Hass Gross Receipts Tax v. Governor/Courtney Statements
    • House Bill (HB) 2830 Proposal (updated):
      1. Eliminates Corporate Income Tax
      2. Corporations pay flat $250 for the first $3 million of sales
      3. Total Sales Minus $3 million – taxed at below rate:
        • Gross Receipts Tax
        • Includes all business entities
        • Sales above $3 million
          • .25 percent Gross Receipts on wholesale
          • .35 percent Gross Receipts on Retail
          • .85 percent for services – new rate .75 percent
          • .48 percent all others
          • New Agriculture, Forestry, Fishing rate: .15 percent
        • Eliminates Corporate Income tax – new ‘bridge plan’ to increase current rates for FY 17-19 from 6.6 percent/7.6 percent to 8 percent/9 percent
        • Net Increase $954 million – new proposal would raise:
          • $890 million 17-19
          • $1.165 billion 19-21
          • $1.421 billion 21-23
          • $1.654 billion 23-25
        • Dedicates 75 percent to education
      4. Includes personal income tax deductions

**Not enough votes today – need 3/5ths so at least one Republican in Senate & House


In the news:

Gov. Brown criticizes union threats aimed to force corporate tax increase

Tension over revenue, transportation erupts into confrontation at Capitol


Awaiting Consideration on the House/Senate Floor and Final Action:

Senate Bill (SB) 339 – Community Renewable Energy Assocation (CREA)/AOC Small Scale Renewable 8 percent “Fix” Bill
Passed out of Committee with one NO vote (Representative Reschke). Heads to House Floor to be carried by Representative Johnson.

House Bill (HB) 2933 – Emergency Projects Funded by the Special Public Works Fund
HB 2933 removes the current $2.5 million cap that can be granted for emergency projects from the Public Works Fund on a biannual basis, allowing the State better access to matching federal emergency fund programs.
STATUS: Passed Senate unanimously. Passed House 58-0. Awaiting Signature by the Governor

Senate Bill (SB) 936SIP in Rural Areas
SB 936 increases taxable portion of projects located in rural areas eligible for property tax exemption under Strategic Investment Program (SIP).
STATUS: Passed out of Committee unanimously.  Awaiting vote on House Floor and will be Carried by Representative G. Smith.

Public Hearings of Interest Next Week:

Senate Bill (SB) 256 – Willamette Falls Navigation Infrastructure
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.
STATUS: Public Hearing June 14 in the SubCommittee on Transportation & Economic Development

Contributed by: Amanda Dalton | AOC Consultant

2017-06-15T21:14:10+00:00 June 9th, 2017|Categories: Community & Economic Development|Tags: , |