Oct 03, 2016
From KPMG TaxWatch
If approved by Oregon voters on Election Day, Measure 97 would impose a gross receipts-based minimum tax on Oregon corporations with more than $25 million in Oregon sales (determined under the rules for computing the sales factor). Currently, Oregon’s minimum tax is based on Oregon-sourced sales and is capped at $ 100,000 annually for corporations with total Oregon sales of $100 million and above. Under Measure 97, corporations with over $25 million in Oregon sales would pay a minimum tax of ($30,001) plus a 2.5 percent gross receipts tax on all additional sales above $25 million. For instance, a taxpayer with $50 million of Oregon-sourced sales would see its minimum tax liability increase from $50,000 to $655,000. The measure would be effective beginning in 2017.
A recent poll conducted by DMH Research indicates Measure 97 is favored by 60 percent of registered voters and that ten percent of voters are undecided. However, there are a number of factors that could still affect the likelihood of passage. Interestingly, 48 percent of voters polled also said the state should maintain current tax rates and spending on services. Please stay tuned to TWIST for future updates on Measure 97.
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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.