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Possibly coming in May, a vote
on keeping $275 million in
corporate taxes
Much debate in the Legislature
this year has centered on the
state’s corporate “kicker,”
which works like this: Since
Oregon’s Legislature meets only
every two years, state officials
must estimate a two-year budget
that includes what the state
believes will be collected in
both individual and corporate
taxes. A law passed in 1979 by
the Legislature and put into the
Oregon Constitution by voters in
2000 states that at the end of
each biennium, if the actual
collection of taxes is more than
two percent higher than the
forecast, the money is returned
to individual taxpayers and
corporations. Oregon is the only
state in the nation that has
such a law, known as the
“kicker.” This year, there is
significant support in the
Legislature from both the
Democrats and Republicans, as
well as business leaders, to end
the corporate kicker and put the
estimated $275 million scheduled
to be returned to corporations
(most based outside of Oregon)
in December of this year into a
“rainy day” savings fund in case
the state goes through a future
economic downturn. Money still
would be returned to individual
taxpayers. It appears that
support in the Legislature is
growing to send two measures to
voters this May to end the
corporate kicker and establish a
“rainy day” fund. It’s important
to note that most Oregon
companies, including the
majority of Bend Chamber
members, file tax returns as
individuals, so they still would
get a tax “kicker” if any
proposed ballot measure passes
in May.
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Oregon sales
tax? Maybe yes, maybe no
Last week’s survey question was,
“Do you think a sales tax to
reform Oregon’s tax structure
can pass the legislature and
voters?” We received a lot of
different opinions on this one.
Some examples:
“No. You either eliminate the income tax or have a
sales tax, or you keep income
tax and eliminate the sales tax.
A sales tax always starts at X
percent and within a few years
goes higher. It just opens the
door for ever-increasing taxes,
and subjects business to do
accounting and collecting for
the state without compensation.”
“The only a way a sales tax passes is if there is a
clear and obvious reduction in
other taxes. Otherwise, it will
go down in flames. If it does
pass, it will be a close vote.”
“…I think it will pass the Legislature because that
will make those folks serving
the public feel as though they
did something. Then the voters
will defeat it 2-1 much like
they did in 1993. I will vote
for a sales tax because that is
the best tax we can have to keep
our schools funded, etc. But
most voters do not share my
view.”
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Not to late to join the Chamber
on two legislative trips
It’s not too late, but this is
the last call for two trips the
Bend Chamber is putting together
in March – one to the Oregon
Legislature in Salem on March 1
and our “One Voice” trip to
Washington, D.C. the last week
of March. The all-day trip to
Salem on March 1 is the Oregon
State Chamber of Commerce’s
annual “Capital Day,” featuring
a morning program of legislative
leaders discussing significant
statewide issues and a noon
luncheon with Gov. Ted
Kulongoski. We’ll spend the
afternoon visiting our local
legislators. The cost is $35 per
person. On the “One Voice” trip
to Washington, D.C., March
27-29, we’ll talk to our
congressmen and others about
business concerns in Central
Oregon, especially
transportation, education and
insurance. If you’re interested
in either trip, call Jeff
Nielson at the Chamber,
382-3221, or e-mail
jeff@bendchamber.org as soon
as possible.
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Final Bend home sales statistics
for 2006 not as negative as
thought
Much has been written about the
slowdown in existing home sales
and a possible reduction in
prices in 2006, but final
statistics for last year
recently released by the Central
Oregon Realtors Association show
that Bend seems to be weathering
the storm much better than some
areas of the country. True,
sales were down: 2,074 homes
were sold, down 27 percent from
the red-hot market of 2005.
However, the dollar value sold
was down only 11.6 percent,
still a whopping $842.3 million.
That’s still double from 2003.
And prices still continued to
rise. The average sales amount
for a home in 2006 was $406,122,
up 21 percent from 2005. And the
average days on the market did
increase slightly, to 132 in
2006 from 120 in 2005, but still
only was two days higher than
2004.
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Your Oregon senators are coming
to town
Oregon Senators Ron Wyden (D)
and Gordon Smith (R) are
continuing their tradition of
holding joint town hall meetings
around Oregon. They will be in
Bend at 11 a.m. Tuesday, Feb.
20, at the Bend Senior Center,
1600 Reed Market Road. The
meeting is open to anyone
interested. Information: Sen.
Wyden’s office, 330-9142, or
Sen. Smith, 318-1298.
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This week’s survey question
Should Oregon put collections
from corporate tax “kicker” into
a “rainy day” fund? (See item 1,
above). Please e-mail your
responses to:
jeff@bendchamber.org.
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