January 23, 2019
January 23, 2019
More than two dozen bills have been introduced in the Oregon Legislature to raise taxes on businesses. Here are some of the worst ones
1. A 60% business property tax hike: Taxing business property at real market value (RMV), rather than the current assessed value formula. This would raise property taxes on businesses by 50-60 percent. Some businesses could see even steeper increases. For example, Music Millennium in Portland would have a seven-fold increase in property taxes. (HJR 3, HJR 4, and HB 2167).
2. A 3% business property tax increase: Eliminates the discount for on-time payment of property taxes on businesses. Effectively a 3 percent increase in property taxes. (HB 2157 and HB 2167).
3. Corporate minimum tax increase: Changing the top minimum tax on C-corps from $100,000 to 0.1 percent of Oregon sales. (HB 2163. HB 2145 and HB 2156 also raise the corporate tax rates).
4. Over 500% tax hike on corporate minimum: Raises the minimum tax on S-corps from $150 to $1,000. (HB 2146)
5. Small business tax increase. Hb 2155 makes it harder to qualify for a reduced personal income tax rate that is allowed for certain pass-through income. (HB 2155 and SB 211)
6. Business tax rate increases: Increasing corporate minimum tax and increases rates of corporate excise tax to match the higher personal income tax rates. (HB 2636) As with HB 2155 and SB 211, this bill also repeals provisions that currently allow small business owners to elect reduced rate on pass-through income or income as sole proprietor.
7. 80-100% alcohol tax hikes: Doubles the tax on beer and other malt beverages and raises the tax on wine by more than 80 percent. (HB 2125).
8. Double alcohol license fees: Doubling the annual license fee paid by breweries, wineries, distilleries, brewpubs, as well as beer and wine wholesalers and retailers. (SB 248)
9. Up to 250% tobacco tax & vaping tax increases: HB 2159 Imposing a tax on all vaping products at 95 percent of the wholesale price.. HB 2123 has a slightly lower rate on devices. HB 227 is a $2 per pack increase in cigarette taxes.
10. New and higher taxes on cell-phones, internet calls and telecommunication devices: SB 300 would allow taxation of radio communications services, radio paging services, commercial mobile radio services, personal communications services and cellular communications services. SB 58 increases fees on telecommunication providers.
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