Oregon Senate Republicans
Stability and predictability should be available to all
Salem, OR – Senate Republicans introduced a bill this week that would allow the Governor to negotiate tax predictability with a variety of businesses in exchange for economic investment in the state. With the approval of the legislature last December, the Governor entered into an agreement with a global company that will invest $150 million in the state and create 500 full time jobs.
“If it is good for one business, it is good for hundreds of other companies that want to grow, invest and create living-wage jobs in Oregon,” said Betsy Close (R-Corvallis/Albany). “A shot at predictability shouldn’t only be available to big companies. Certainty doesn’t cost taxpayers or the state a dime, but is a powerful tool to help businesses grow and put more Oregonians on the payroll.”
Senate Bill 819, as introduced by the Senate Republicans, would empower the Governor to give tax certainty to any company willing to make an investment in Oregon. The bill removes the threshold of $150 million and 500 full-time jobs, giving the Governor flexibility to solicit companies of various sizes and capabilities, rather than limiting the focus to a select few big corporations.
The Governor could grant a contract that would guaranty that a company’s tax liability is calculated using Oregon’s current single-sales factor, which doesn’t count payroll or property when determining how much a multi-state corporation owes. Instead, Oregon law only looks at sales in the state. Locking in a taxation method for companies allows them to predict and plan for the future, an invaluable tool for growth and success.
“This is an issue of equity and fairness,” said Senator Tim Knopp (R-Bend). “Oregon businesses no matter how small should be able to compete on a level playing field with the big guys. Extending certainty to all will foster a robust economy that helps families thrive and puts money in state coffers.”
“During December’s special session, Republicans asked that this opportunity be extended to more businesses,” said Senator Doug Whitsett (R-Klamath Falls). “We were told there wasn’t time, and that a longer session was needed. Now we have the time and it is still the right thing to do.”