Billion-dollar business tax proposed for Oregon but small firms exempted

UPDATE: This story has been updated with additional details on the tax and comment from a key business group.

SALEM — Oregonians could pay less on their state income taxes but pay more for some goods and services, under a legislative proposal to raise money for the state's struggling public school system.

The long-awaited proposal will tax businesses just under one-half of 1% of their gross receipts over $1 million while cutting Oregonians' income tax rates by one-quarter of a percent for all but the top bracket. Sales of groceries, gasoline and diesel would not be taxed under the proposal.

The smallest businesses — those that make less than $1 million in taxable revenue per year — will not be subject to the tax, nor will any that already pay the medical provider tax. Businesses that are taxed . . .