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):
- Eliminates Corporate Income Tax
- Corporations pay flat $250 for the first $3 million of sales
- 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
- Includes personal income tax deductions
- House Bill (HB) 2830 Proposal (updated):
**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) 936 – SIP 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