Revenue vote passes house; Senate passage expectedKari Chisholm

On Tuesday, the Oregon House voted 37-23 to pass an increase in the personal income taxes, and 36-24 to pass an increase in corporate income taxes. Combined, the two measures will provide $733 million in revenue to keep schools and colleges open, courts and prisons operating, and human services funded during the recession.

All Democrats voted yes on both bills - except Rep. Mike Schaufler (D-Happy Valley). The 36th vote on the corporate income tax came from Rep. Bob Jenson (R-Pendleton). Jenson was joined by Rep. Greg Smith (R-Heppner) on the personal tax increase.

The Senate, where Democrats have exactly the 18-12 margin they need, is expected to pass both bills on Wednesday. From the O:

The two tax bills are on a fast track. Democratic leaders expect no trouble in the Senate, where Democrats control the 18 votes needed for passage.

From the O, here's the details:

Personal income taxes:

House Bill 2649 raises rate to 10.8 percent for taxable income above $125,000 for single filers, $250,000 for households for tax years 2009-2011, then drops to 9.9 percent.

Raises rate to 11 percent for taxable income above $250,000 for single filers, $500,000 for households.

Raises an estimated $472 million for 2009-2011, less in later years.

Corporate taxes:

House Bill 3405 creates sliding scale: $150 for corporations with Oregon sales of less than $500,000, up to $100,000 for sales of more than $100 million.

Increases corporate income tax rate to 7.9 percent for income above $250,000 for 2009 and 2010, and to 6.6 percent for income below $250,000.

Top rate drops to 7.6 percent for 2011.

Raises an estimated $261 million for 2009-2011.

Discuss.

June 9, 2009 | Kari Chisholm | Comments (0 so far) Permalink: Revenue vote passes house; Senate passage expected

Share on Facebook

Sponsored Advertising