Full List of Measures

State Measures

  1. Measure 66

Raises tax on household income at and above $250,000 (and $125,000 for individual filers). Reduces income taxes on unemployment benefits in 2009. Provides funds currently budgeted for education, health care, public safety, and other services

Summary

Under current law, a marginal tax rate of 9% applies to taxable household income over $15,200 (or $7,600 for individual filers), taxpayers may deduct federal income taxes paid, and unemployment compensation is taxable. The measure eliminates income taxes on the first $2,400 of unemployment benefits received in 2009. For tax years 2009-2011, the measure increases the tax rate by 1.8 percentage points on the amount of household income between $250,000 and $500,000, by 2 percentage points on the amount above $500,000 (for individual filers, rate increases begin at $125,000 and $250,000 respectively). For the tax year beginning 2012, the tax rate for households with income above $250,000 (above $125,000 for single filers) will drop to 9.9%. The measure does not increase the tax rate on household income below $250,000 (below $125,000 for individual filers). For households with adjusted gross income at or above $250,000 (or $125,000 for individual filers), reduces federal income tax deduction. Raises $472 million to provide funds currently budgeted for education, health care, public safety, and other services. Because some state money brings in federal matching funds, Oregon will likely receive more federal money if the measure passes than if it fails. Other provisions.

Result of "Yes" Vote

The "Yes" vote raises taxes on income at and above $250,000 for households, and $125,000 for individual filers. Tax rate increases by 1.8 percentage points on the amount of taxable income between $250,000 and $500,000, and 2 percentage points on the amount above $500,000 for households. For individual fliers, the rate increases begin at $125,000 and $250,000 respectively. Eliminates income taxes on the first $2,400 of unemployment benefits received in 2009. Raises an estimated $472 million to provide funds currently budgeted for education, health care, public safety, and other services.

Result of "No" Vote

The "No" vote rejects tax changes on income at and above $250,000 for households, and $125,000 for individual filers. Rejects tax exemption for first $2,400 of unemployment benefits received in 2009. This leaves the amount currently budgeted for education, health care, public safety, and other services underfunded by an estimated $472 million.

Estimate of Financial Impact

This measure increases General Fund revenues for the state budget between $217 million and $242 million per year for fiscal years 2010, 2011, and 2012. The measure increases revenues by approximately $180 million per year thereafter, depending upon growth in personal income and federal tax liability.

Revenue from this measure is included in the 2009 to 2011 state budget. Failure of the measure will reduce revenues expected to be available for expenditures in the 2009-11 state budget by $472 million. This could result in reduced state-shared revenues to schools and local governments. Failure of the measure also may result in a reduction of federal funds that are used to pay for some state services.

Failure of the measure may limit the state's ability to borrow money. It also may have a negative impact on the state's credit rating which could increase the cost of future borrowing by the state and local governments.

  1. Measure 67