Joan McGuireIP 17 already has opponents including business groups and Gov. Kotek.
Share this article!A proposal on the November ballot that would pay each Oregonian $750 per year has gained a few high-profile critics including a prominent business organization and the state’s Democratic governor.Initiative Petition 17 would significantly raise corporate taxes to fund a one-of-a-kind rebate program to dole out payments to all residents who’ve lived here at least 200 days.IP 17 would raise around $7 billion per year through a new gross receipts tax, according to the state’s latest fiscal analysis.The proposal and accompanying petition were certified by the Secretary of State’s Office July 24.If approved, the first rebate payments would be distributed in 2026 based on revenue collected in 2025. Residents would apply for the rebate through their individual income tax filings or through the revenue department’s website. Rebates would be paid through either direct deposit or physical check.Business leaders say Oregon already has one of the highest corporate tax rates in the country, primarily because corporations pay taxes on profits as well as gross receipts — and Oregon is one of only two states that assess both. Businesses are also often subject to the overlay of local taxes.A report by D.C.-based think tank the Tax Foundation found that corporations in the Portland metro area pay a combined 14.2% state-local tax on corporate net income plus a .57% tax on gross receipts.The group Oregon Business & Industry came out hard against the proposal with a campaign called Defeat the Costly Tax on Sales sponsored by numerous local chambers of commerce and industry groups. The group’s messaging materials call IP 17 the largest tax increase in state history and claim as a “tax-on-a-tax,” it would be far more costly than a typical sales tax.“By the time an Oregon product goes from raw materials to a manufacturer to a packaging company to a distributor and then to a retailer, it may have been taxed five times before it finally reaches the consumer,” reads a statement from the group.Gov. Tina Kotek expressed opposition to IP 17 on Tuesday, saying the measure would have a negative impact on the state government. She cites the updated fiscal analysis that found IP 17 would reduce the amount of general fund available to fund high-priority issues for her including human services, K-12 education and healthcare.“I am opposed to this ballot measure,” Kotek is quoted as saying. “It may look good on paper, but its flawed approach would punch a huge hole in the state budget and put essential services for low wage and working families at risk.”To help Oregon’s economic recovery, the governor already asked local leaders to not establish any new taxes on businesses.In a Q&A with chief petitioner Antonio Gisbert, Willamette Week notes nearly all of the $760,000 spent to get the proposal on the ballot came from California donors, and most of that from companies associated with Los Angeles investor Josh Jones.A former neuroscientist and union representative, Gisbert responded by saying the effort began six years ago in a cafe in Eugene, and only Oregonians signed the ballot petition.He said the nearest comparison is Alaska’s Permanent Fund Dividend, which issues payments to residents based on oil and mining revenue.Oregon is one of 24 states that allows citizens to initiate laws through a petition process. The number of signatures required to make a ballot is tied to the number of people who voted for governor in the most recent election. Depending on the sort of law change sought, valid signatures from 4-8% of the electorate are required.Notable legislation passed through direct democracy in Oregon includes mandatory minimum criminal sentencing for serious felonies (1994), doctor-assisted suicide (1994), drug decriminalization (2020) and removal of references to slavery in the state constitution (2022).
