SB 1507 – Reduces taxes imposed under various tax programs, operative conditioned, upon imposition of a statewide retail sales tax dedicated to specified purposes.
The actual scope, exemptions, and specific items subject to the sales tax on goods and services will need to be defined in separate legislation that creates the retail sales tax itself. This bill (SB 1507) is structured as a conditional tax reduction that only takes effect if such a sales tax is implemented.
Tax Rate Reductions (shown as blanks to be filled in):
- Corporate activity tax rate reduced from 0.57 percent to a lower rate (blank)
- Corporate excise tax rates reduced from 6.6% and 7.6%
- Corporate minimum taxes reduced across all sales brackets (all shown as blanks)
- Personal income tax rates and brackets modified with blanks to be filled in.
New Provisions:
- Estate tax exemption increased to $13.99 million (Section 6)
- Operative date conditions requiring a retail sales tax of at least 3% be enacted by January 1, 2030 (Section 7)
Required uses of sales tax revenue (Section 7(2)(b)) including:
- Public safety grants
- Wildfire programs
- Oregon Conservation Corps
- K-12 education (40 additional hours)
- Economic development
- Earned income tax credit increase
- Childcare subsidies
- Replacement of lost General Fund revenue
Your are being asked to pay a sales tax of at least 3% for non-essential purposes.. It appears to be a bait-and-switch. Reducing taxes to be replaced by a sales tax they can raise. This scheme will hit to low income the hardest.