IP 28/Measure 97: What You Should Know about IP 28/Measure 97
Depending on who you talk to IP 28 (will appear on the ballot as Measure 97) is either a new piggy bank for funding schools, healthcare and senior services or a back breaking tax that will make big businesses vacate the state en-mass. What is the truth?
I want to take this opportunity to share with you the report that the Legislative Revenue Office provided to legislators in May about IP 28/Measure 97. The Legislative Revenue office is the permanent, non-partisan agency that provides legislators with research and analysis on tax policies.
The report (click HERE for a copy) provided the following facts about IP 28/Measure 97’s impact on businesses and individuals:
• Creates a new gross sales tax on businesses of 2.5% on businesses that have sales of $25 million/year or more. This equals a 25% increase in state taxes.
• Tax is on a business’s total revenue, not profits.
• There is no restriction on what products or services can be taxed including gasoline, utilities, clothing, medicine, health care and food.
• The tax is assessed at each step of a product’s production (manufacturer, packaging, distributor and the retailer). Businesses will likely pass this additional cost onto consumers which will increase prices for the product or service.
• Higher prices will cost the average Oregonian household over $600/year.
• The impact to businesses will result in the loss of over 38,000 private sector jobs in Oregon.
In addition to the facts provided in the report the Office of Legislative Counsel has issued an opinion early this week that the Legislature is not obligated to use the new tax revenue on K-12 education, health care and senior services. “The Measure would not bind a future legislature in its spending decisions. If Measure 97 becomes law, the Legislative Assembly may appropriate revenues generated by the measure in any way it chooses.” This opinion was given by Ted Reutlinger, Chief Deputy Legislative Counsel. Click HERE for a copy of his letter to Rep. Davis.
New Foreclosure Prevention Program Launched
Home Rescue, a new foreclosure prevention program, launched on August 17th. Home Rescue will provide homeowners with monthly mortgage payments for up to one year (maximum $20,000 benefit). To be eligible applicants must prove a 10% reduction in projected 2016 income to any tax year between 2009 and 2015.
For more information or to apply please go to www.oregonhomeownerhelp.org.