The Oregon Legislature just released a batch of over 50 tax related bills it will consider in the 2019 session. Here are some of the Oregon tax proposals that will hit business the hardest.
1. Business property taxes: HJR 3, HJR 4, and HB 2167 tax business property at real market value (RMV). This would raise property taxes on businesses by 50-60 percent. This would be a small business killer, especially for retailers, restaurants, and taverns.
2. More business property taxes: HB 2157 and HB 2167 eliminates the discount for on-time payment of property taxes on businesses. Effectively a 3 percent increase in property taxes.
3. Massive business filing fee increase: HB 2146 raises the minimum tax on S-corps from $150 to $1,000.
4. Business income tax increase: HB 2155 and SB 211 makes it harder to qualify for a reduced personal income tax rate that is allowed for certain pass-through income.
5. C-corps tax increase: HB 2163 changes the top minimum tax on C-corps from $100,000 to 0.1 percent of Oregon sales. HB 2145 and HB 2156 also raise the corporate tax rates.
6. Lodging tax enforcement: HB 2166 authorizes local governments “to subpoena and examine witnesses, administer oaths and order production of books or papers to prosecute inquiries related to local transient lodging tax.”
7. Vaping tax: Someone hates vaping. HB 2159 impose a tax on all vaping products at 95 percent of the wholesale price. HB 2123 has a slightly lower rate on devices.