Full List of Measures
State Measures
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.
Raises $10 corporate minimum tax, business minimum tax, and corporate profits tax. Provided funds currently budgeted for education, health care, public safety, and other services
Summary
Under current law, corporations conducting business in Oregon pay a $10 minimum tax; the tax has not changed since 1931. Some corporations pay a profits tax of 6.6%. All other businesses pay no minimum or profits tax. Beginning in the tax year 2009, the Measure increases the $10 minimum corporate tax to $150; some corporations with over $500,000 in Oregon revenues will pay a minimum tax of approximately 0.1% of Oregon revenues. Limits tax to $150 for S corporations and partnerships. Sole proprietors are not impacted by this measure. Raises tax rate some corporations pay on profits by 1.3 percentage points until 2011; the increase then drops to 1 percentage point and as of 2013, applies only to profits over $10 million. Corporations pay minimum tax or profits tax, not both. Increases filing fees by $50 for Oregon businesses, but $225 for out-of-state businesses. Raises an estimated $255 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 the Measure fails. Other provisions
Result of "Yes" Vote
The "Yes" vote raises a $10 corporate minimum tax and establishes a $150 minimum tax for most businesses or a minimum tax of approximately 0.1% of total Oregon revenues for some corporations with over $500,000 in Oregon revenues. Raises tax rate some corporations pay on profits by 1.3 percentage points. Increases certain business filing fees. Raises an estimated $255 million to provide funds currently budgeted for education, health care, public safety, and other services.
Result of "No" Vote
The "No" vote retains the $10 corporate minimum tax, rejects the $150 minimum tax, rejects raising the corporate profits tax, and other changes. This leaves the amount currently budgeted for education, health care, public safety, and other services underfunded by an estimated $255 million.
Estimate of Financial Impact
This measure increases revenues for the state budget between $118 million and $138 million per year for fiscal years 2010, 2011, and 2012, primarily for the General Fund. The measure increases revenues by approximately $123 million per year thereafter, depending upon growth in corporate profits and sales.
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 to 2011 state budget by $255 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 states' 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.