The 0.57% gross receipts tax (HB 3427-A) was fast tracked yesterday.
You might find this article interesting, as it highlights the turn of events that led to OBI declaring its neutrality on the new tax.
To be clear, OSCC is on record OPPOSING the tax bill. This is the testimony we submitted.
None of our concerns (that we have discussed at length in our numerous member calls) have been addressed. Therefore, OSCC’s opposition is still in effect.
To reiterate, here are the specifics of the legislation:
- Tax rate of 0.57% on Oregon sales above $1 million;
- 35% deduction for labor or business inputs;
- An exemption for receipts from sales to a wholesaler or ag cooperative for any sales outside of Oregon; and
- An exemption for groceries (defined as those that qualify for ‘SNAP’).
HB 3427 is also part of an amorphous agreement on a package of bills that is largely still undefined:
- A new paid family leave program that will include a 37% employer / 63% employee cost share. Details are not yet defined.
- A PERS reform proposal that is yet to be defined (although we understand we will be learning more details this week).
- HB 2269 (employer health care tax) will die.
- Cap & Trade (HB 2020) will be negotiated separately and is not part of the deal.
We are particularly concerned about the dual impact of HB 3427 along with the Cap & Trade bill (HB 2020) that will increase energy and transportation costs significantly for OSCC members.