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Measure 30

Explanatory Statement

Ballot Measure 30 enacts several temporary and permanent tax increases and changes in order to maintain certain levels of service in public education, senior services, public safety and other areas, and to avoid budget cuts.

The temporary tax increases and changes include the following:

1. Cigarette Taxes: Extends 10 cents per pack tax on cigarettes until January 1, 2006.

2. Income Taxes--Temporary Graduated Income Tax Assessment: A graduated income tax assessment will be added to an individual's income tax liability for 2003-2004. This tax will continue for 2005 unless the projected ending balance of Oregon's General Fund is greater than 4% of the General Fund appropriations for the 2003-05 biennium. The assessment is a percentage of taxpayer's income tax liability. The graduated rates are:

Single
Percentage added to
income tax owed
Joint or Head of Household
Below $10,000
0%
Below $20,000
$10,000-$19,999
1%
$20,000-$39,999
$20,000-$24,999
2%
$40,000-$49,999
$25,000-$29,999
3%
$50,000-$59,999
$30,000-$34,999
4%
$60,000-$69,999
$35,000-$49,999
5%
$70,000-$99,999
$50,000-$69,999
6%
$100,000-$139,999
$70,000-$89,999
7%
$140,000-$179,999
$90,000-$119,999
8%
$180,000-$239,999
Above $120,000
9%
Above $240,000

3. Corporate Credits: 20% of certain existing corporate tax credits will be deferred until 2006.

4. Dividends Received by Corporations: Deductions for dividends received by corporations from subsidiaries will be reduced from 70% to 35%, January 1, 2003-December 31, 2005.

The permanent tax increases and changes include the following:

1. Oregon Medical Expense Deduction: Taxpayer's age before Oregon's medical expense deduction is allowed will change from 62 years to 63 years in 2003, to 64 years in 2004, and to 65 years in 2005 and after. Beginning January 1, 2003, Oregon's medical expense deduction is reduced by the following percentages for those taxpayer's who claim this deduction:

Single
Reduction (%)
Joint or Head of Household
Below $15,000
0%
Below $30,000
$15,000-$29,999
60%
$30,000-$59,999
$30,000-$39,999
80%
$60,000-$79,999
$40,000-$49,999
90%
$80,000-$99,999
Above $50,000
100%
Above $100,000

2. Deduction and Depreciation of Certain Business Vehicles: Eliminates deductions for certain business vehicles weighing 6,000-14,000 pounds.

3. Extraterritorial Corporate Income Exclusion: Requires extraterritorial corporate income to be added back to a corporation's Oregon taxable income.

4. Corporate Minimum Tax: Increases Oregon C corporations' minimum tax from $10 to $250-$5,000 depending on sales.

5. S Corporation Minimum Tax: Increases Oregon S Corporations' minimum tax from $10 to $250-$500 depending on sales.

6. Property Tax Discounts: Reduces the discount a taxpayer may take on property tax payments made by November 15th of each year from 3% to 1.5% for full payment and eliminates 2% discount for two-thirds payment.

Existing law requires $544.6 million in budget cuts for the 2003-2005 budget period if Ballot Measure 30 is not enacted.

Committee Members:Appointed by:
Representative Dan DoyleChief Petitioners
Representative Dennis RichardsonChief Petitioners
Senator Ryan Deckert*Secretary of State
Representative Lane Shetterly*Secretary of State
Jeffrey StandenMembers of the Committee

*Member dissents (does not concur with explanatory statement)

(This committee was appointed to provide an impartial explanation of the ballot measure pursuant to ORS 251.215.)

Arguments in Favor

Arguments in Opposition

Table of Contents

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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