SENATE REPUBLICAN OFFICE: Dems illegally breach Constitution with lawless $22.8M tax hike


May 30, 2017
Jonathan Lockwood
Communications Director
Dems illegally breach Constitution with lawless $22.8M tax hike
SALEM, Ore.-State law proved to be no match for Senate Democrats’ desire to illegally pass a $22.8 million tax hike today. Senate Bill 28 will spike taxes at least $22.8 million in the two upcoming budget cycles. In 1996, Oregonians approved Ballot Measure 95, now Article IV, Section 25, to mandate tax increases receive a three-fifths vote of all members in the Legislature. Article IV, Section 18 of the Oregon Constitution requires tax hike bills to start in the House of Representatives. But SB 28 was illegal on two accords, it passed without the legally required three-fifths vote, and it innapropriately originated in the Senate.
“Senate Democrats are circumventing the Oregon Constitution and thwarting the will of Oregonians by raising revenue in the Senate without requiring a three-fifths vote,” said Republican Leader Ted Ferrioli, of John Day. “It should have been introduced in the House of Representatives, not in the Senate, and it will ignite years of litigation.”
“Oregonians are being exploited by Senate Democrats who are illegally violating the Constitution to dramatically spike taxes,” said state Sen. Dennis Linthicum, R-Klamath Falls. “Today’s tax hike vote was a demonstration of lawlessness.”
“When government increases its budget, Oregonians have to decrease theirs, so when we see a tax hike like this just pass on through without the proper protocols in place, people are rightfully outraged,” said state Sen. Herman Baertschiger Jr., R-Grants Pass.
Senate Republican Deputy Leader Jeff Kruse, of Roseburg, said on the Floor during debate that supporting SB 28 is a violation of the Oath of Office he took when he assumed office.
Businesses will see a dramatic hike in their taxes and for some businesses it will be a new tax. Senate Republicans decried the passage of SB 28 saying it thwarts the will of voters, pointing out too that it should have been introduced first in the House of Representatives.
Senate Bill 28 modifies how Oregon corporate income taxes are apportioned for intangible property and services. It changes the apportionment method from a cost-of-performance method to a market-based method.
The cost-of-performance method attributes all corporate income tax revenues to the state where the greatest proportion of the activity is performed.
The market-based method attributes corporate income tax revenue to the state where the customer is located.
For follow-up commentary please contact Senate Republican Communications Director Jonathan Lockwood at or 971-645-2140.