By Taxpayer Foundation of Oregon
Early results from the November 2020 election show many taxes on the horizon for Oregon businesses.
Although the largest business tax on the ballot, METRO’s wage tax Measure 26-218, was soundly defeated, there still are many other taxes that Oregon business will face.
Income tax increase: Multnomah County’s Measure 26-214 which increases income taxes on higher earners by nearly 20% will hit many small family businesses that pay their business taxes through their personal income tax. This also will make Portland one of the highest marginal tax rates in the nation. The sudden spike in income taxes will have a direct effect on local small businesses.
Product tax increase: Measure 108 was approved by voters and will be increasing taxes on tobacco, vaping and cigars. This tax will likely put many vaping shops and cigar shops out of business as they cannot compete with online sales (which often avoid any taxes).
Hotel taxes: A Harney County hotel tax (13-15) is too close to call.
Fuel taxes: Both North Plains and Hines fuel taxes appear to be passing.
Over 40 other local taxes are expected to pass.
Additionally, the Governor has drafted a beer and wine tax for the 2021 Legislative Session. That high profile tax increase will be more likely to pass now that the majority of lawmakers who voted for the $3 billion in previous taxes of the 2019 Legislative Session will be returning or have been replaced with candidates they supported.
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