RACC submitted written testimony opposing HB 2674-1 Amendment, which would levy a full suite of new taxes to fund diesel engine retrofits and replacements with large impacts on construction, trucking and agriculture. CLICK HERE TO READ BILL AMENDMENTS. 

                In 2019, legislators on both sides of the aisle passed legislation to phase out older diesel engines in the Portland metropolitan area and make smart investments in newer technologies. The bill that ultimately passed, HB 2007, was a compromise to encourage the retrofit and replacement of older on-road engines in heavy traffic areas, while exempting ag trucks, log trucks and small truck fleets. 

                Unfortunately, just two years later, that agreement is already falling apart.  The amendment to HB 2674 completely rewrites the bill imposing a suite of new taxes on Oregonians to fund clean diesel engine retrofits and replacements: 

• 3% excise tax on the retail sale of tires;
• 5% privilege tax for businesses who sell or lease off-road equipment;
• 5% use tax on off-road diesel equipment purchased outside of Oregon;
• 5% rental tax for rentals of off-road diesel equipment;
• 2% rental tax for rentals of all other qualified heavy equipment (note: this tax goes to counties not diesel retrofits);
• Privilege tax on heavy-duty trucks and light-duty vehicles; and
• Gas tax on all red dyed diesel used in off-road equipment.

                This is an appalling overreach by our policymakers, particularly when many Oregon families are struggling to recover from the COVID-19 pandemic, devastating wildfires in 2020, and the recent ice storms.

                At its core, this amendment creates a suite of new taxes on construction, forestry and agriculture to fund engine upgrades in Oregon’s most populous metropolitan areas. It’s fundamentally unfair to working families who are barely struggling to get by. 

                HB 2674-1 is being heard by the House Committee on Energy and Environment on Wednesday, March 3, 2021. 

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                The Roseburg Area Chamber of Commerce has weighed in on several proposed bills during Oregon’s Legislative Session, which the chamber believes is bad for our local businesses.  So far, those bills include:

• SB 137 and HB 2839:  Disconnects businesses from Federal CARES Act tax benefits.  RACC Opposes.
• SB 139: Repeals the Oregon Small Business Tax Cut.  RACC Opposes. 
• SB 137-1:  This amendment is a tax increase on Oregon businesses, as the proposed amendment would disconnect Oregon businesses from the benefits of the bipartisan CARES Act legislation, which would raise taxes by $115 million on Oregon businesses.  RACC Opposed. 
• SB 335: Reduces number of forest and land management representatives on Oregon’s Board of Forestry.  RACC Opposed. 
• SB 483: Retaliation presumption for employment actions taken within 60 days of whistleblower complaint.  RACC Opposes. 
• SB 716:  Requires employers to reasonably accommodate employee’s work schedule availability related to childcare.  RACC Opposes. 
• SB 801 and SB 802:  Workers’ comp COVID presumption. RACC Opposes. 
• HB 2043:  Directs insurer to consider only specified information in determining rates for motor vehicle liability insurance policy, disallowing tools such as credit, education and occupation, resulting in higher automobile insurance costs.  RACC Opposes.  
• HB 2205: If passed, this bill would deputize third parties/plaintiffs attorneys to file class action lawsuits against employers for any violation of Oregon law–wage and hour, workplace safety, etc.  RACC Opposes. 
• HB 2253 and HB 2457: Related to taxing of Paycheck Protection Program (PPP)/Levies state tax on PPP loans.  RACC Opposes.
• HB 2358: Overtime payments for agriculture workers. RACC Opposes. 
• HB 2474: This bill would fundamentally change the law on family leave in Oregon. Among the proposed changes are reducing the number of employees from 25 to 1 for purposes of eligibility of employers subject to the law, amending the definition of “family member” and reducing the waiting period for employee eligibility under OFLA from 180 days to 30 days.  RACC Opposes. 
• HB 2489: Reclassification of independent contractors as employees.  RACC Opposes. 
• HB 2379 and HB 2598:   These bills propose new timber taxes at the worst possible time in light of the pandemic and the devastating wildfires of 2020.  RACC Opposed. 
• HB 2839:  House counterpart to SB 137, which would disconnect Oregon from Federal CARES Act tax provisions that allow for the immediate monetization of businesses losses through the tax code to help with cash flow issues as a result of the pandemic.  RACC Opposes.
• HB 3296:  If passed, this bill would increase beer and wine taxes to nearly 30 times their current levels.  This bill is the largest tax on beer, wine, cider and spirits ever proposed in the U.S.  RACC Opposes.
• HB 3305: Proposed legislation would begin to ban the sale of “petroleum” diesel by “non-retail dealers” as soon as 2024 in Clackamas, Multnomah and Washington counties and statewide by 2027.  RACC Opposes.