Sean C. Morgan
Oregon voters will have the chance to vote on a tax increase passed by the legislature last year on Feb. 3.
Ballots for Measure 30 will be mailed out by Jan. XX.
Voting yes on the measure will enact a temporary personal income tax surcharge, increase the corporate minimum tax, extend a cigarette tax and make other changes on income and property taxes.
A no vote retains the existing personal income, corporate and other tax laws. Denial of the measure will trigger $544.6 million in budget cuts to education, health care, senior services and public safety.
The income tax surcharge would range from 1 percent to 9 percent based on state income taxes owed. The surcharge rate progresses based on the taxpayer’s federal adjusted gross income.
No surcharge would be levied on incomes below $10,000. For those making between $10,000 and $20,000, the surcharge would be 1 percent of the state tax liability. The surcharge increases by 1 percent for each additional $10,000 a taxpayer makes to a maximum of 9 percent.
The tax will continue through 2005 unless the projected ending General Fund balance is greater than 4 percent of the General Fund appropriations for the 2003-05 biennium.
The measure also increases the corporate minimum tax from $10 to $250 or more. It eliminates the corporate extraterritorial income exclusion. These changes would be permanent.
It temporarily reduces the corporate dividend income deduction and tax credits, deferring them until 2006. .
The measure restricts elderly medical expense deductions based on age and income. It reduces discount for full and two-thirds property tax payments by Nov. 15. These changes would be permanent.
It extends a 10-cent-per-pack cigarette tax through 2005.
The legislature approved the provisions of Measure 30 last year, but opponents of the tax increase gathered nearly 140,000 signatures to refer the tax increase to the Feb. 3 ballot. The measure required 50,420 valid signatures to be placed on the ballot. The petition had 118,273 valid signatures.
Of the tax revenues generated by this measure, $844 million are temporary and $372 million are permanent.
The estimated revenue shortfalls if the measure fails are $284.6 million for K-12 education and $14.3 million for higher education; $187.6 million to children, families, seniors and disabled citizens; $24.7 million to prisons and parole, $23.7 million to courts and $9.7 million to juvenile corrections and state police.