Tax policy in Oregon

in Oregon

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Tax policy in Oregon

Tax rates in 2017

Personal income tax: 5% to 9.9%

State sales tax: No state sales tax

Corporate income tax: 6.60% to 7.60%

Tax revenues in 2016

Total tax collections: $11.04 billion

Tax collections per capita: $2,698

Total state expenditures • State debt • Oregon state budget and finances

Oregon generates the bulk of its tax revenue by levying a personal income tax and select sales taxes (otherwise known as excise taxes). The state derives its constitutional authority to tax from Article IX of the state constitution.^[1][2]

Tax policy can vary from state to state. States levy taxes to help fund the variety of services provided by state governments. Tax collections comprise approximately 40 percent of the states' total revenues. The rest comes from non-tax sources, such as intergovernmental aid (e.g., federal funds), lottery revenues and fees. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise (or special sales) taxes and corporate income tax.^[3]

Tax rates[edit]

Personal income tax[edit]

See also: Personal income tax

Oregon utilized a personal income tax rate ranging from 5 percent to 9.9 percent in 2017. An individual's tax liability varies according to his or her tax bracket. A tax bracket is the income range to which a tax rate applies.^[4]

The table below summarizes personal income tax rates for Oregon and neighboring states in 2017.^[4]

Personal exemptions[edit]

States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year. The personal exemption indicates that only a person's income above a certain level is subject to taxation. ^[5]

Exemptions work by reducing the amount of an individual's taxable income. Both state and federal taxes allow exemptions. The state exemptions for Oregon and its neighboring states as reported by the Tax Policy Center are reported in the chart below.^[6]

Capital gains tax[edit]

See also: Capital gains tax

A capital gains tax is a tax levied on the profit gleaned from the sale of a capital asset. Examples of capital assets include stocks, businesses, land parcels, homes, personal items and more. Capital gains are taxable at both the federal and state levels. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income. ^[7][8][9]

The table below summarizes uppermost capital gains tax rates for Oregon and neighboring states in 2015.

Sales tax[edit]

See also: Sales tax

Almost all states employ a statewide sales tax, which ranges from 2.9 percent in Colorado to 7.25 percent in California. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax.

Oregon did not levy a sales tax in 2017. The table below displays the state tax rates, average local tax rates, and average combined tax rates for Oregon and its neighboring states.^[10]

The table below summarizes sales tax rates for Oregon and neighboring states in 2017 as well as the state's policy with respect to types of items commonly exempted from sales tax (i.e., food, prescription drugs and nonprescription drugs).^[11]

Excise taxes[edit]

See also: Excise taxes

Excise taxes, also known as selective sales or differential commodity taxes, are levied for the sales of specific goods or services. Excise taxes are considered indirect taxes because they are not charged directly to individuals. In most cases, the excise tax is paid by the producer or seller of an item. The cost of the tax is then included in the sale price of the item and passed on to the consumer. The tables below provide excise tax rates for motor fuel, alcohol and cigarettes in Oregon and neighboring states.^{[12][13][14][15]}

Corporate income tax[edit]

See also: Corporate income tax

Oregon levies a corporate income tax rate of 6.60 to 7.60 percent. The table below compares the corporate income tax rates of some of its neighboring states.^[16][17]

Property tax[edit]

See also: Property tax

Most often, property tax applies to real estate, although some states levy property taxes on other types of personal property, such as automobiles. Generally speaking, an individual's property tax liability is determined by the tax rate and the tax base, which is "determined by both the assessed value of the property and ... the share of the assessed value that is subject to tax." To learn more about property taxes, including tabulation methods, see this page. Property tax rates can vary substantially from locality to locality within a state.^{[18][19][20] [18][19]}

The table below provides the mean amount of property taxes paid in 2012, as well as property tax as a mean percentage of home value for 2014, in Oregon and neighboring states.^[18]

The table below lists per capita state and local property tax collections for Oregon and neighboring states for fiscal year 2013.^[21]

Estate and inheritance taxes[edit]

See also: Estate and inheritance taxes

Estate and inheritance taxes are levied on the property of deceased individuals (decedents). Generally speaking, an estate tax is applied to the value of a decedent's property and is paid from the estate before distribution to any heirs. By contrast, an inheritance tax is paid by the heir or heirs of a decedent's assets.^[22][23][24]

Oregon is one of 14 states that levies an estate tax. In addition, residents are liable for the federal estate tax. The table below summarizes the estate tax rates for Oregon and neighboring states in 2016.^[24]

Tax revenues[edit]

See also: Oregon state budget and finances

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.^[25]

The table below lists 2016 tax collections by source as percentages of total collections. About 75.2 percent of Oregon's total state tax collections came from income taxes.^[25]

Tax ballot measures[edit]

Voting on taxes
Ballot measures
By state
By year
Not on ballot
Local City taxes County taxes School taxes Property taxes Sales taxes Income taxes Other taxes

See also: Taxes on the ballot and List of Oregon ballot measures

Ballotpedia has tracked the following ballot measures relating to taxes in Oregon.

1. Oregon Measure 28, Temporary Income Tax Rate Increase Measure (January 2003)
2. Oregon Measure 59, Federal Income Tax Deductions for State Returns Initiative (2008)
3. Oregon Measure 30, Income Tax Surcharge Referendum (February 2004)
4. Oregon Measure 82, Repeal Truck Weight-Mile Tax and Increase Fuel Taxes Referendum (May 2000)
5. Oregon Measure 20, Increased Cigarette Tax for State Health Plan Measure (September 2002)
6. Oregon Measure 47, Property Tax Reduction and Increase Limitation Initiative (1996)
7. Oregon Real Estate Transfer Tax Amendment, Measure 79 (2012)
8. Oregon Estate Tax Phase-Out Initiative, Measure 84 (2012)
9. Oregon Measure 6, Vehicle Registration Tax Referendum (May 1972)
10. Oregon Measure 1, Cigarette Tax Increase Referendum (January 1972)
11. Oregon Measure 8, Motor Fuel and Commercial Vehicle Tax Increases Referendum (1976)
12. Oregon Measure 3, Vehicle Registration Requirement and Fee Increases Referendum (1978)
13. Oregon Measure 14, Abolition of Federal Income Tax Deductions Referendum (1960)
14. Oregon Measure 1, Revision of Personal and Corporate Income Taxes Referendum (October 1963)
15. Oregon Measure Nos. 318-319, Motor Carrier Transportation Tax Increase Referendum (1952)
16. Oregon Measure Nos. 322-323, Cigarette Stamp Tax Referendum (1952)
17. Oregon Measure 6, Cigarette Tax Referendum (1956)
18. Oregon Measure Nos. 308-309, Cigarette Tax Referendum (1942)
19. Oregon Measure Nos. 302-303, Cigarette Tax Referendum (October 1947)
20. Oregon Measure Nos. 320-321, One-Year Tax Increase for Expenditures Measure (1948)
21. Oregon Measure Nos. 316-317, Progressive Income Tax Referendum (1930)
22. Oregon Measure Nos. 306-307, Oleomargarine Tax Referendum (1932)
23. Oregon Measure Nos. 316-317, Oleomargarine Tax Referendum (July 1933)
24. Oregon Measure Nos. 308-309, Sales Tax Increase for Education Referendum (May 1934)
25. Oregon Measure Nos. 322-323, Cigarette and Tobacco Excise Taxes Referendum (1926)
26. Oregon Measure 46, Require Majority of Registered Voters to Approve Tax Increase Ballot Measures Initiative (1996)
27. Oregon Measure 5, Require Voter Approval for New or Increased Taxes and Fees Initiative (1994)
28. Oregon Measure 20, "Equal Tax" on Transfer of Property Initiative (1994)
29. Oregon Measure 7, Raise Tax Limit on Certain Property Initiative (1992)
30. Oregon Measure 5, Property Tax for Schools and State Operations Initiative (1990)
31. Oregon Measure 11, School Choice System and Tax Credits for Private Enrollment Initiative (1990)
32. Oregon Corporate Tax "Kicker" Funds for Education Initiative, Measure 85 (2012)
33. Oregon Measure 3, PERS Pension Tax Exemption Repeal and Retiree Benefits Referendum (1990)
34. Oregon Measure 91, Federal Income Taxes Deductible on State Tax Returns Initiative (2000)
35. Oregon Measure 93, Voter Approval of Taxes by Certain Approval Percentage Initiative (2000)
36. Oregon Measure Nos. 326-327, Appropriation of 10% from Self-Sustaining Board Revenues Referendum (1926)
37. Oregon Measure Nos. 318-319, Tax on Companies Utilizing Railways Initiative (June 1906)
38. Oregon Measure Nos. 322-323, Farming Tax Exemption Initiative (June 1908)
39. Oregon Measure Nos. 318-319, State Normal School at Monmouth Initiative (1910)
40. Oregon Measure Nos. 326-327, County Regulation of Taxes and Abolition of Poll Tax Initiative (1910)
41. Oregon Measure Nos. 336-337, State Normal School at Weston Initiative (1910)
42. Oregon Measure Nos. 340-341, State Normal School at Ashland Initiative (1910)
43. Oregon Measure Nos. 320-321, Board of Regents Initiative (1912)
44. Oregon Measure Nos. 350-351, Graduated Income Tax Initiative (1912)
45. Oregon Measure Nos. 352-353, Tax Exemption on Household Goods Initiative (1912)
46. Oregon Measure Nos. 354-355, Tax Exemption on Debt, Stocks, and Bonds Initiative (1912)
47. Oregon Measure Nos. 356-357, State Inheritance Tax Revisions Initiative (1912)
48. Oregon Measure Nos. 364-365, Graduated Franchise and Land Taxes Initiative (1912)
49. Oregon Measure Nos. 326-327, $1,500 Land Improvements and Personal Property Tax Exemption Initiative (1914)
50. Oregon Measure Nos. 336-337, Graduated Realty Tax for Counties Initiative (1914)
51. Oregon Measure Nos. 344-345, Tax Code Commission Initiative (1914)
52. Oregon Measure Nos. 356-357, Equal Assessment and Taxation of Property Initiative (1914)
53. Oregon Measure Nos. 306-307, Full Rental Value Land Tax and Homemakers' Loan Fund Initiative (1916)
54. Oregon Measure Nos. 308-309, State Normal School at Pendleton Initiative (1916)
55. Oregon Measure Nos. 320-321, Tax and County Indebtedness Limitations Initiative (1916)
56. Oregon Measure Nos. 308-309, Delinquent Tax Notice Initiative (1918)
57. Oregon Measure Nos. 306-307, Single Tax Implementation Initiative (1920)
58. Oregon Measure Nos. 304-305, Single Tax Amendment (1922)
59. Oregon Measure Nos. 308-309, Tax for 1925 Exposition Amendment (1922)
60. Oregon Measure Nos. 316-317, Income Tax Measure (1922)
61. Oregon Measure Nos. 300-301, Income Tax Referendum (1923)
62. Oregon Measure Nos. 312-313, Income Tax Repeal Initiative (1924)
63. Oregon Measure Nos. 324-325, Commercial Motor Vehicle Tax Referendum (1926)
64. Oregon Measure Nos. 328-329, Graduated Income Tax and Property Tax Deduction Initiative (1926)
65. Oregon Measure Nos. 330-331, Bus and Truck Annual Operating License Fees Initiative (1926)
66. Oregon Measure Nos. 334-335, Graduated State Income Tax Initiative (1926)
67. Oregon Measure Nos. 320-321, State Tax Commission to Administer Assessment and Tax Laws Referendum (June 1927)
68. Oregon Measure Nos. 300-301, Five Cent Gas Tax Initiative (1928)
69. Oregon Measure Nos. 302-303, Vehicle License Fee Reduction Initiative (1928)
70. Oregon Measure Nos. 304-305, Progressive State Income Tax Initiative (1928)
71. Oregon Measure Nos. 314-315, State Highway Commission Research Initiative (1932)
72. Oregon Measure Nos. 318-319, Law Limitations on Taxes and Indebtedness Initiative (1932)
73. Oregon Measure Nos. 320-321, Tax Supervising and Conservation Board Initiative (1932)
74. Oregon Measure Nos. 322-323, Property Tax Reduction and Income Tax Increase Initiative (1932)
75. Oregon Measure Nos. 302-303, Property Tax Limitations Initiative (1934)
76. Oregon Measure Nos. 304-305, Tax Rules for Large School Districts Initiative (1936)
77. Oregon Measure Nos. 310-311, Tax Reductions on Real and Tangible Property Initiative (1936)
78. Oregon Measure Nos. 314-315, Transaction Tax for Elderly Funds Initiative (1938)
79. Oregon Measure Nos. 314-315, Tax Revenues for Public School Fund Initiative (1944)
80. Oregon Measure Nos. 316-317, Income Tax to Create Retirement and Disability Insurance Fund Initiative (1944)
81. Oregon Measure Nos. 314-315, Tax for Old-Age and Disability Fund Initiative (1946)
82. Oregon Measure Nos. 316-317, Tax for School Support Fund Initiative (1946)
83. Oregon Measure Nos. 312-313, Personal Income Tax Exemptions Initiative (1948)
84. Oregon Measure Nos. 316-317, Property Tax Limitation Initiative (1952)
85. Oregon Measure Nos. 330-331, Reevaluation of Highway Taxes Initiative (1952)
86. Oregon Measure 10, New Property Tax Bases for Schools Initiative (1970)
87. Oregon Measure 9, Prohibition of Property Taxes for Education Initiative (1972)
88. Oregon Measure 6, Limitations on Ad Valorem Property Taxes Initiative (1978)
89. Oregon Measure 6, Limitations on Real Property Tax Initiative (1980)
90. Oregon Measure 3, Limitations on Real Property Tax Initiative (1982)
91. Oregon Measure 6, Removal of State's Land Use Planning Powers Initiative (1982)
92. Oregon Measure 2, Elections for New Taxes and Limits on Property Tax Initiative (1984)
93. Oregon Measure 7, 5% Sales Tax for Schools and Reduce Property Tax Initiative (1986)
94. Oregon Measure 9, Limits on Property Tax Rates and Assessed Value Increases Initiative (1986)
95. Oregon Measure 11, Limits on Property and Sales Taxes and Renter's Tax Relief Initiative (1986)
96. Oregon Measure 12, Revision of Corporate Income Taxes Initiative (1986)
97. Oregon Measure 16, Tax Credits for Former Nuclear Weapons Manufacturers Initiative (1986)
98. Oregon Measure 5, Tax on Malt Beverages and Cigarettes for Athletic Fund Initiative (19880
99. Oregon Measure 23, Creation of Healthcare Finance Plan Initiative (2002)
100. Oregon Measure 101, Healthcare Insurance Premiums Tax for Medicaid Referendum (January 2018)
101. Oregon Measure 118, Corporate Tax Revenue Rebate for Residents Initiative (2024)
102. Oregon Business Tax Increase, Measure 97 (2016)
103. Oregon Measure Nos. 320-321, Tax on Express and Communications Firm Earnings Initiative (June 1906)
104. Oregon Measure Nos. 312-313, Distribution of Surplus Tax Revenues to School Districts Initiative (1942)
105. Oregon Measure 44, Cigarette and Tobacco Tax Increase Initiative (1996)
106. Oregon Measure 41, State Tax Deductions Equal to Federal Deductions Initiative (2006)
107. Oregon Measure 66, Income Tax Increase Referendum (January 2010)
108. Oregon Measure 67, Corporate Tax Increase Referendum (January 2010)
109. Oregon Measure Nos. 358-359, Freight Rate Regulations Initiative (1912)

Recent news[edit]

The link below is to the most recent stories in a Google news search for the terms Oregon taxes. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also[edit]

• Oregon
• Oregon state budget and finances
• Personal income tax
• Sales tax
• Corporate income tax
• Property tax

External links[edit]

• Tax Policy Center
• Federation of Tax Administrators
• Tax Foundation

Footnotes[edit]

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