The House Committee on Revenue has passed a bill that would increase taxes on businesses.

SB 139 narrows the scope of which businesses can qualify for a reduced tax rate, and will raise more than $30 million a year for the state. There’s no identified objective for this money. Instead, it simply raises revenue.

In May, it was announced that Oregon is set to have a tax revenue over $1 billion more than projected.

“We should be doing everything we can to support businesses and main streets so we can restore jobs,” said House Republican Leader Christine Drazan (R-Canby). “Increasing taxes will threaten the ability of our communities to bounce back from the pandemic. The state does not need this money, so we shouldn’t be taking it from Oregonians.”

“We’re seeing far too many proposals this session to increase taxes simply for the sake of raising state revenue,” added Representative E. Werner Reschke (R-Klamath Falls), who raised serious concerns regarding SB 139 A during Revenue Committee. “The state has more money than ever, but Oregonians and businesses don’t. This bill will simply make life harder for people.”

Though the Oregon Constitution requires that bills for raising revenue originate in the House, this bill comes from the Senate, and apparently, Legislators, under the guidance of Legislative Counsel have determined that this bill is not subject to the requirements of Article IV, Section 18:

Where bills to originate. Bills may originate in either house, but may be amended, or rejected in the other; except that bills for raising revenue shall originate in the House of Representatives.

SB 139 passed out of the House Committee on Revenue on party lines (4-3) and will be third read on the House floor Thursday.


--Staff Reports

Post Date: 2021-06-23 15:01:57

Last Update: 2021-06-23 15:08:08