Oregon Tax Law Could Head to Voters as Republicans Try to Block $300 Million Increase
Oregon Republican lawmakers are scrambling to collect 78,116 signatures before the June 4 deadline to refer a bill that will increase taxes by $300 million to public vote.
GOP members launched the ‘No Tax Clawback’ signature collection campaign immediately after Governor Tina Kotek signed Senate Bill 1507 on Thursday.
Trump’s One Bill Beautiful Bill Will Reduce State Income by $890 Million
Lawmakers passed the bill in response to President Donald Trump’s ‘One Big Beautiful Bill’ that will effectively reduce Oregon’s state tax income by $890 million.
Senate Bill 1507 was designed to retrieve some of those losses and disassociate Oregon from certain federal tax laws.
If Republicans collect a sufficient number of signatures by the June 4 deadline, Oregonians will have the opportunity to vote against changes to the tax structure in the November elections.
Sources: Oregon Secretary of State Blue Book / OLIS SB 1507 staff measure summary
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Some of the Proposed Tax Changes
Should the ‘No Tax Clawback’ signature campaign fail, some of the proposed tax changes, which are seen to favor the already wealthy and not the man-in-the-street, are:
- No more interest rate deductions on the purchase of new passenger vehicles
- Businesses cannot immediately deduct the full cost of large machinery and equipment purchases from their state taxable income in the first year.
Benefits for Moderate-to-Low-Income Earners
Democratic proponents of SB 1507 point out that the bill provides a $600 million tax cut for the majority of everyday citizens.
- The bill increases the Oregon Earned Income Tax Credit (EITC) from 9% to 14% for individuals, and from 12% to 17% for families in the low-to-moderate income earning bracket. This will improve the lives of 200,000 Oregonians struggling to meet rising costs.
- SB 1507 lowers taxes for businesses by establishing a new state tax credit of $1,000 per employee, up to 10 employees, for businesses that create new jobs paying at least 150% of the minimum wage.
Senate Bill 1507 Will Raise $311 Million for Core Services
According to the state’s Legislative Revenue Office, SB 1507 is expected to generate $311 million in tax revenue during the current biennium, money needed for core government services and education.