Oregon Another Step Closer to a Gross Receipts Tax Funding Public Education

Last night, Oregon’s Joint Committee on Student Success passed House Bill 3427, which raises about $2 billion over the next biennium to improve the state’s public school system. The improvements will be funded via a gross receipts tax, entitled the Corporate Activity Tax, levied on businesses with commercial activity over $1 million. Included in the bill is a reduction in Oregon’s individual income tax rates for those making less than $125,000 by 0.25 percentage points for each tax bracket.   The bill will require a three-fifths supermajority approval in the legislature to be enacted as per Oregon’s constitution, as the bill includes a new revenue-raising mechanism for the state. If the bill fails to earn a three-fifths supermajority in the legislature, voters must consider the proposal via a ballot initiative. After discussions with businesses in the state, the Committee increased the deduction options for firms from 25 percent to 35 percent of…

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