This examination of Measure 118 is part of an Oregon Capital Chronicle series on the measures Oregon voters will see on their Nov. 5 ballots.
What it is:
Measure 118, the Oregon Rebate, is a citizen initiative that would tax most companies that file tax returns in Oregon on their sales over $25 million a year by 3%. The proceeds would be distributed to all Oregonians equally, regardless of their age or situation, provided they lived in Oregon for at least 200 days in the applicable year.
If passed, the measure would go into effect in 2025. The average rebate could range from $1,000 to 1,300 in 2026 and increase to $1,600 per person in 2027 and $1,686 in 2028. A state analysis also found that the program would reduce total personal income taxes by 33%, including reducing or eliminating personal income taxes for filers who earn less than $40,000 a year.
The measure is backed by the Oregon Progressive Party, the Pacific Green Party, Teamsters Local 206 and a few other groups, along with Californians who support adopting a universal basic income: Josh Jones, a Los Angeles investor, the family and foundation of the late Gerald Huff, a California software engineer, and Dylan Hirsch-Shell, a former Tesla engineer and current candidate for mayor of San Francisco, who donated $100,000 to the campaign.
Opponents include a wide bipartisan group that includes Democratic Gov. Tina Kotek and about 50 Democratic and Republican Oregon lawmakers and more than 200 companies and business groups.
What supporters say
Portland Tenants United: “Measure 118 will put desperately needed money in the hands of Oregonians who otherwise won’t have the money to pay the rent, and will help keep them housed.”
Antonio Gisbert, Portland resident and the measure’s chief petitioner: “Our tax system is deeply unfair, with corporations paying a small percentage of overall taxes. Oregon is no different. When passed, Measure 118 would change this. With the Oregon Rebate, corporations will essentially pay your owed taxes at the end of the year for you, so you don’t have to.”
Pacific Green Party: “Measure 118 isn’t harmful to Oregon or us Oregonians. It’s only harmful to a small number of very large corporations that pour millions into lobbying efforts and political contributions. While they flood our elected leaders with influence, ordinary citizens like you and me struggle to have our voices heard.”
What opponents say
Oregon Farm Bureau: “Measure 118 isn’t just bad for Oregon family farmers and ranchers. It’s harmful to all Oregonians. That’s because most of this tax would be paid by consumers in the form of higher prices on everyday items such as gasoline, medicine, utilities and even food. The tax would be assessed at each step in the production process. By the time a product has gone from the farm to the consumer, it will have been taxed multiple times, increasing its cost. And there are no exemptions for everyday essentials.”
Democratic Gov. Tina Kotek: “It may look good on paper, but its flawed approach would punch a huge hole in the state budget and put essential services for low-wage and working families at risk.”
State Senate Minority Leader Daniel Bonham, R-The Dalles: “Measure 118 is another out-of-state and dangerous experiment that doesn’t align with the needs of Oregonians.”
This Measure Would
- A “yes” vote would enact the tax for the 2025 calendar year and pay every Oregonian a rebate in 2026.
- A “no” vote would keep the status quo and not impose a new corporate tax.
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