Spring 2004 ONSA Newsletter

The legislatively-approved tax increase package contained in House Bill 2152 has been successfully referred to Oregon voters for a special election on February 3, 2004. HB 2152 will appear on the ballot as Measure 30 with the following ballot title:

ENACTS TEMPORARY PERSONAL INCOME TAX SURCHARGE; INCREASES,
CHANGES CORPORATE, OTHER TAXES; AVOID SPECIFIC BUDGET CUTS

The provisions of Measure 30 (see Page 2) include a temporary increase in personal
income tax, temporary reduction in corporate dividend income deduction and tax credits,
as well as a number of permanent changes in the state tax system. The permanent changes include increasing the minimum corporate tax rates for S and C corporations. In addition, the measure extends a 10-cent-per-pack cigarette tax which was implemented in 1993 to benefit the Oregon Health Plan.

The ballot title also refers to avoiding specific budget cuts; however, the budget cuts
are not included in HB 2152. Instead, the proposed cuts are contained in a separate
appropriations measure, House Bill 5077. HB 5077 included the budgets for the State
School Fund, Department of Higher Education, Department of Transportation, Bureau of Labor and Industries, Governor’s Office, the Legislative branch agencies, Secretary of State and four advocacy commissions, as well as two sections referred to as “disappropriations”.
These disappropriations are decreases in the amount of funds allocated to certain agencies in the 2003/2005 state budget and will take effect on May 1, 2004, if Measure 30 (HB 2152) is rejected by the voters.

Over the next several weeks opponents and proponents will be arguing about Measure 30 and the potential impact the proposed tax increases will have on Oregon’s struggling economy. The special election is also likely to create speculation about whether or not the Legislative Assembly will return for a special session to reconsider the scheduled “disappropriations.” The Legislature was
expected to convene in June for a special session to address changes in the state tax structure; however, failure of Measure 30 will not require a special session since the Legislature already prepared for the possibility that HB 2152 would be referred and rejected by the voters by adopting the “disappropriations” in HB 5077. •

Oregon Neighborhood Store Association Newsletter
	*YOUR* NEIGHBORHOOD STORE ASSOCIATION
		Spring 2004 Vol. 5 No. 1
Legislative Tax Increase Proposal Goes to the Voters on February 3
The legislatively-approved tax increase package contained in House Bill 2152 has been successfully referred to Oregon voters for a special election on February 3, 2004. HB 2152 will appear on the ballot as Measure 30 with the following ballot title: ENACTS TEMPORARY PERSONAL INCOME TAX SURCHARGE; INCREASES, CHANGES CORPORATE, OTHER TAXES; AVOID SPECIFIC BUDGET CUTS The provisions of Measure 30 (see Page 2) include a temporary increase in personal income tax, temporary reduction in corporate dividend income deduction and tax credits, as well as a number of permanent changes in the state tax system. The permanent changes include increasing the minimum corporate tax rates for S and C corporations. In addition, the measure extends a 10-cent-per-pack cigarette tax which was implemented in 1993 to benefit the Oregon Health Plan. The ballot title also refers to avoiding specific budget cuts; however, the budget cuts are not included in HB 2152. Instead, the proposed cuts are contained in a separate appropriations measure, House Bill 5077. HB 5077 included the budgets for the State School Fund, Department of Higher Education, Department of Transportation, Bureau of Labor and Industries, Governor’s Office, the Legislative branch agencies, Secretary of State and four advocacy commissions, as well as two sections referred to as “disappropriations”. These disappropriations are decreases in the amount of funds allocated to certain agencies in the 2003/2005 state budget and will take effect on May 1, 2004, if Measure 30 (HB 2152) is rejected by the voters. Over the next several weeks opponents and proponents will be arguing about Measure 30 and the potential impact the proposed tax increases will have on Oregon’s struggling economy. The special election is also likely to create speculation about whether or not the Legislative Assembly will return for a special session to reconsider the scheduled “disappropriations.” The Legislature was expected to convene in June for a special session to address changes in the state tax structure; however, failure of Measure 30 will not require a special session since the Legislature already prepared for the possibility that HB 2152 would be referred and rejected by the voters by adopting the “disappropriations” in HB 5077. •		Inside: What passage of Measure 30 Means Oregon’s Minimum Wage Increases to $7.05 on January 1st Signature Gathering Enters High Gear Thanks to our 2003 Golf Tournament Sponsors! 2003 Compliance Check Winners! 2003 Legislative Issues Legislative Activity Remain ONSA’s Top Priority & You can Help!