Measure No. 118 - Corporate Tax Revenue Rebate for Residents Initiative

Summary

Current law requires corporations to pay higher of either tax on taxable income or corporate minimum tax. Except S corporations, minimum tax amount determined by tax bracket based on corporation's Oregon sales; minimum tax capped at $100,000 for $100,000,000 or more in sales. Beginning 2025, measure removes minimum tax cap; increases minimum tax on all corporations with Oregon sales exceeding $25,000,000 by imposing additional tax of 3% for sales above $25,000,000. Measure directs Department of Revenue to equally distribute increased revenue (minus certain costs) to all individuals residing mo.re than 200 days annually in Oregon. Revenue distribution does not affect individual eligibility for state benefits; measure requires replacement of reduced federal benefits if distribution negatively affects individual's benefits under any need-based program. Other provisions

A "Yes" vote increases corporate minimum tax on Oregon sales exceeding $25,000,000; eliminates tax cap; distributes revenue to eligible individuals; state replaces any reduced federal benefits.

A "No" vote retains existing corporate minimum taxes on Oregon sales; twelve tax brackets impose different tax amounts, capped at $100,000 tax on sales exceeding $100,000,000.

Arguments

"Proponents of IP-17 want to use the revenue from the tax increase to fund an annual rebate check, which they estimate at $750 per person on the assumption that the tax will raise at least $3 billion in additional revenue. That might sound good. But if it raises the cost of goods, drives jobs and economic activity out of state, and puts Oregon-based businesses at a massive disadvantage with their out-of-state competitors, it's likely to be an awful deal for Oregonians." - Jared Walczak, VP of State Projects at the Tax Foundation, in opposition to Measure No. 118 (Learn more)

"I am opposed to this ballot measure. 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." - Tina Kotek, OR Governor, in opposition to Measure No. 118 (Learn more)

"Poverty in Oregon would go way down. The Oregon Rebate is estimated to reduce child poverty by about 26%. That's a huge change, right? Like you, like if a family of four gets 3,000 bucks—boom, lump sum—that's money that family can use to make the situation better. Why should we have poverty when we have so much wealth around us?" - Antonio Gisbert, chief petitioner for the initiative, in support of Measure No. 118 (Learn more)

"Vote Yes! on Measure 118 to get yearly rebates of $1,600 for yourself and every Oregonian, kids included. A four person household will get over $6,400 every year. Paid for by making giant corporations pay their fair share." - Progressive Democrats of America, in support of Measure No. 118 (Learn more)

Measure Details