Chamber Joins “Oregonians Against the Costly Tax on Sales” Coalition in  Opposition to IP 17 (July 11, 2024)

Costly Tax on Oregon Sales Proposed for November Ballot / Take Action Now!

Oregon business organizations and chambers have been monitoring Initiative Petition 17 (IP 17) for the past couple of months.  By the July 5 filing deadline, the petitioner behind IP 17, submitted a final batch of signatures, bringing the total he has submitted to 168,854.  IP 17 proposes an increase to the state’s corporate minimum tax structure by adding a 3% tax on Oregon sales in excess of $25 million.

The petitioner needs 117,173 valid signatures to qualify for the November ballot. There is always some error rate associated with submitted signatures, so it’s common for petitioners to aim for well over the required amount to account for the error rate. The Secretary of State’s validation process began yesterday, July 10. The petitioner would need historically low accuracy to not qualify.  The Secretary of State has up to 30 days to complete the validation process, which gives the SOS until August 4, although it is anticipated to be completed sooner.

This gross receipts tax will have extremely negative consequences, particularly since it applies at every stage of the supply chain. It will drive up costs of everything from groceries and gas to prescription drugs and housing construction. 

Stop harmful policies driving up costs for small businesses.  Energy costs are a significant expense for small businesses. From powering storefronts and offices to running essential equipment, energy is a vital component of daily operations. Unfortunately, recent policy changes have led to a hefty increase in energy costs, placing an undue burden on small business owners who are already grappling with high inflation and workforce challenges.

Here is why it’s crucial to take a stand against these policies:

• The increased costs put a financial strain on small businesses by reducing cash flow, making it harder to make investments in growth and provide family wage jobs.
• As businesses take on higher operating costs, there is often no other option but to pass these costs on to customers. This only compounds the struggle for families already trying to cope with higher and higher living costs.
• High inflation combined with soaring cost of living increases are hurting families and their ability to meet their basic needs. Higher utility bills can stretch household budgets to the breaking point.

What happens with the money raised from this tax increase? It is “rebated” (the petitioner’s language) to anyone living in Oregon for 200-plus days, including children, and regardless of whether an individual pays taxes.

Oregon Business & Industry (OBI) is leading the campaign against this costly tax on Oregon sales. It is critical that business leaders in our community and across Oregon are aware of this threat and are prepared to plug into efforts to oppose this massive tax expansion. This campaign will be similar to the battle we fought eight years ago against Measure 97.  We cannot wait for the SOS validation to start this effort. 

The Roseburg Area Chamber has joined the “Oregonians Against the Costly Tax on Sales” coalition and we encourage our members to do the same. As with Measure 97, the chamber will keep our members updated on issues related to IP 17 through the general election in November. 

Important information related to defeating this costly tax:

• IP 17 Facts
• Business/Organization Coalition Member Form
• Individual Coalition Member Form

Stay tuned for more information and details!