Measure 118 - Corporate Tax Revenue Rebate for Residents

Ballot Icon Ballot Measure

FAILED

Result Icon Result

CONSERVATIVE

BALLOT LANGUAGE

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 118 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 more 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.

WHAT IT MEANS

Yes

A "Yes" vote means that you desire to:

  • Increase the corporate minimum tax on Oregon sales exceeding $25,000,000, resulting in increased prices on everyday goods and services for Oregon citizens.
  • Eliminate the tax cap.
  • Distribute the tax revenue to individuals who reside more than 200 days per year in Oregon.
  • Replace any reduced federal benefits for individuals.

No

A "No" vote keeps existing corporate minimum taxes on Oregon sales, having 12 tax brackets imposing different tax amounts capped at $100,000 tax on sales exceeding $100,000,000.

ARGUMENTS FOR AND AGAINST

Yes

  • “The Oregon Rebate is designed as an investment in the state's residents and local economies, providing rebates of approximately $1,600 every year to every Oregonian. Measure 118 recognizes that the biggest corporations are not paying their fair share in taxes and correctly uplifts the contributions of all Oregonians to the state's economy and success, and trusts them to make the best decisions for themselves, their families and communities. Measure 118 ensures that large corporations begin to pay their fair share by increasing the minimum corporate tax rate for companies after more than $25 million in-state revenue. Measure 118 levels the playing field between big corporations and local businesses, striving to create an economy that benefits everyone.” - Oregon Rebate 

  • “It’s time these corporate giants and Koch-funded special interests opposing our campaign see the writing on the wall. The Oregon Rebate will help rural communities by giving back to working families who make corporate earnings possible. We’ve seen enough price gouging and greed-flation and are taking back our power. These cash-flushed companies can be good actors for once and give back to the consumers, workers, and communities who have made their extraordinary earnings possible.” - Dave Alba, State Coordinator, Progressive Democrats of America 

  • "The Oregon Rebate is designed to help everyday Oregonians who are struggling to make ends meet. We recognize that when individuals and families thrive – not just CEOs and shareholders – our entire state prospers. At a time of record corporate profit, everyone can reap the benefits. By putting money directly into people's pockets, we can strengthen and support the people, families, neighborhoods, communities, and small businesses that make our economy strong."  - Antonio Gisbert, Oregon Rebate  

  • “Today, the largest corporations doing business in Oregon pay less than 0.12% in taxes, that’s just plain wrong. Combine those cost savings with the record-breaking profits over the last few years and one thing is crystal clear: large corporations can and should pay more to carry their fair share of the tax burden and give workers breathing room. At its core, the Oregon Rebate is about valuing every Oregonian and investing in our shared future.” -  Lonnie Douglas, Oregon Rebate

No

  • “Measure 118 is a gross receipts tax on businesses with more than $25 million in annual Oregon sales. In other words, it’s a tax on sales – not profits or income. That means businesses in Oregon would be forced to pay this new $6.8 Billion tax on the goods and services they provide, regardless of whether they make a large profit, make a small profit, or are losing money. Measure 118 would force hundreds of local businesses to raise their prices, cut jobs, or shut down completely. Measure 118 would add a costly new 3% tax on sales that could apply at every step of the supply chain in Oregon. 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 – making it far more costly than a typical sales tax. By implementing the largest tax increase in Oregon history, Measure 118 would increase prices for everyday goods and services that Oregonians rely on – such as food, medicine, and electricity. Measure 118 would make local Oregon businesses less competitive with out-of-state companies, drive more jobs and revenue out of the state, and hurt our local economies. Measure 118 does not guarantee that revenues from its massive new tax will end up in the pockets of Oregonians. If Measure 118 passes, politicians in Salem could amend it with a simple majority vote and redirect the money anywhere they want.” - No On 118 

  • “Despite being advertised as a tax on large out-of-state businesses, Oregon’s Measure 118 functions as a very high-rate sales tax on the goods and services Oregonians buy every day. Perhaps even more surprisingly, though, this tax designed to target large multinational enterprises will have an even worse effect on Oregon’s main street businesses.” - The Tax Foundation 

  • “There’s no guarantee Oregonians will see this money. The way the measure was written, it means that the legislature can amend it and actually redistribute the money or reuse the money for other purposes without any accountability. I think when people go to noonmeasure118.com, read the facts, see that growing list of coalition members, they’re gonna understand, again, free money’s never free.  They’re going to pay for this largest tax increase in Oregon’s history. They’re going to pay for this tax on sales." -  Angela Wilhelms, President and CEO of Oregon Business and Industry 

  • “It threatens our economic stability by driving up costs for businesses and consumers, leading to widespread job losses and higher prices for goods and services. This measure will result in severe cuts to essential public services, including education, public safety, and infrastructure. We cannot afford to gamble with Oregon’s future on unproven and risky policies.” -  Daniel Bonham, Oregon State Senator

FINANCIAL BACKING

The following information provides insight into the money being spent to pass or defeat the ballot measure.

Yes

Committees formed to SUPPORT the Oregon Measure 118, Corporate Tax Revenue Rebate for Residents Initiative Oregon (2024):

OREGON PEOPLE'S REBATE

Selected Contributions TO: Oregon People's Rebateinclude:

  • Jones Holding LLC
  • Jones Parking Inc.
  • Gerald Huff Fund for Humanity
  • Oregon People's Rebate
  • Humanity Forward
  • Gisele Huff
  • Alexander Tamas

*TO VIEW FINANCIAL REPORTS BY COMMITTEE:

  • Click on the link - this will bring you to the Oregon Secretary of State "Search By Measure" database.
  • Enter the committee's name in the 2nd dialog box from the top.
  • Enter the transaction date range you want to search in the "From" and "To" boxes on the 3rd row.
  • Choose the "Transaction Type" you want to search from the drop-down box on row 6.
  • Click the search button after you have selected all your sort criteria.

No

Committees formed to OPPOSE the Oregon Measure 118, Corporate Tax Revenue Rebate for Residents Initiative Oregon (2024):

DEFEAT THE COSTLY TAX ON SALES

Selected Contributions TO: Defeat the Costly Tax on Salesinclude:

  • Grocery Retail PAC
  • Oregon Business & Industry Association
  • Standard Insurance
  • Home Depot
  • Koch Industries, Inc.
  • US Bancorp
  • Roseburg Forest Products Co.
  • Weyerhaeuser
  • Daimler Truck North America
  • Lithia Motors, Inc.
  • Wells Fargo & Company
  • Walmart Inc.
  • Amazon

OTHER INFORMATION

Yes

No

Check out these articles by the Tax Foundation (Titled 'Oregon Ballot Measure Would Yield Sky-High Business Tax Rates,' 'Oregon Measure 118 Is an Aggressive Sales Tax—and Worse,' and 'Oregon Measure 118 Penalizes Oregon Small Businesses') to learn more about the negative impact Measure 118 would have.

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