Oregon Ballot Measure 97: The 2016 Corporate Tax Initiative
In the 2016 general election, voters in the state of Oregon were presented with a significant proposal regarding corporate taxation known as Ballot Measure 97. This initiative sought to change how the state collected revenue from large corporations to fund essential public services, including healthcare, education, and senior services.
[ไม่มีภาพประกอบ]
The Proposal: A Gross Receipts Tax
Ballot Measure 97 proposed the implementation of a 2.5 percent gross receipts tax—a tax levied on the total sales of a business before any expenses are deducted—on C corporations with Oregon sales exceeding $25 million. To ensure certain business models remained unaffected, the measure included specific exemptions for S corporations and benefit companies, which are entities legally recognized for providing benefits to society and the environment.
If passed, the measure was estimated to generate approximately $3 billion in annual revenue for the state of Oregon.
Economic Impact and Projections
The nonpartisan Oregon Legislative Revenue Office conducted an analysis to determine which businesses would be affected. Out of roughly 250,000 registered businesses in Oregon, only 951 would have been subject to the tax. Furthermore, the analysis indicated that the 100 largest taxpayers would contribute approximately two-thirds of the total funds raised.
Industry-Specific Effects
While the number of affected companies was small, the projected tax increases for specific sectors were substantial:
- Wholesale Companies: Taxes were projected to grow by nearly $600 million, representing a 583 percent increase.
- Retailers: Taxes were expected to rise by $535 million, a 766 percent jump.
- Health Care Firms: These firms faced a projected 1,211 percent increase, adding nearly $100 million annually to the cost of healthcare statewide.
Key Facts
- Proposed Tax Rate: 2.5% gross receipts tax.
- Eligibility Threshold: C corporations with over $25 million in Oregon sales.
- Exemptions: S corporations and benefit companies.
- Estimated Revenue: $3 billion per year.
- Scope: 951 businesses out of 250,000 would have been taxed.
- Outcome: Defeated by Oregon voters in November 2016.
Election Results
The measure was put to a public vote during the November 2016 general election. The electorate ultimately rejected the proposal, with 59.03% of voters opposing the measure and 40.97% voting in favor.
| Choice | Votes | Percentage |
|---|---|---|
| Yes | 808,310 | 40.97% |
| No | 1,164,658 | 59.03% |
| Total | 1,972,968 | 100.00% |
Frequently Asked Questions
What was the primary goal of Ballot Measure 97?
The goal was to increase the corporate minimum tax for large C corporations to fund education, healthcare, and senior services in Oregon.
Which companies would have been exempt from this tax?
S corporations and benefit companies (those determined under state law to benefit society and the environment) would have been exempt.
How many businesses would have actually paid the tax?
According to the Oregon Legislative Revenue Office, only 951 of the approximately 250,000 registered businesses in the state would have been subject to the tax.
What was the projected impact on the healthcare industry?
Healthcare firms would have seen a 1,211 percent increase in their taxes, which was estimated to add nearly $100 million per year to healthcare costs across Oregon.
Did Ballot Measure 97 pass?
No, the measure was defeated in the November 2016 election, with approximately 59% of voters voting "No."