Jun 13, 2016
From KPMG TaxWatch
Backers of a controversial corporate tax proposal in Oregon recently gathered enough signatures to qualify the initiative petition (IP) for the November ballot. If approved by voters, IP 28 would impose a gross receipts tax on Oregon entities with more than $25 million in Oregon sales beginning in 2017. Currently, Oregon’s minimum tax is based on Oregon-sourced sales and maxes out at $100,000 annually for corporations with total Oregon sales of $100 million and above. Under IP 28, corporations with over $25 million in Oregon sales would pay the minimum tax ($30,001) plus 2.5 percent on all additional sales above $25 million. According to the state Legislative Revenue Office, IP 28 would generate $548 million of new revenue in the 2015-2017 fiscal biennium and $6.1 billion in the 2017-2019 biennium. The revenue raised would be used for education, healthcare, and senior services. Please stay tuned to TWIST for updates on IP 28.
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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.