A Closer Look at Oregon Measure 118 (Oregon Rebate)
Measure 118 has been certified by the Oregon Secretary of State Elections Division and will be included on the November 2024 ballot.
If passed by Oregon voters, the measure would significantly increase the minimum tax required to be paid by certain businesses operating in Oregon. A 3% tax on annual Oregon sales in excess of $25 million would be added to the minimum tax that is already required by state law. This change would be effective for tax years beginning on or after January 1, 2025.
The additional funds generated would be dedicated to an annual rebate program and distributed through a refundable income tax credit or a direct cash payment (currently estimated at $1,600 per person) to individuals who reside in Oregon for more than 200 days of a qualifying calendar year.
According to the Oregon Legislative Revenue Analysis, the application of the tax on sales, rather than income, would impact Oregon C-corporations and S-corporations of various sizes and economic sectors regardless of whether they make a large profit, a small profit, or are losing money. Some commentators feel this may cause businesses to exit Oregon or, eventually, go out of business. The analysis also examines the economic impact of the measure, estimating an increase to the costs of goods and services far more than a typical sales tax, as the tax would apply to businesses at every step in the production and selling process in Oregon.
It is unknown how future amendments may expand the measure’s scope, including the types of businesses that would be subject to the additional tax, as well as many aspects of how the additional funds are defined, managed, and directed. Measure 118 is a complex piece of a much larger evolving tax landscape; however, it does not change the current rules and definitions for determining a corporation’s annual Oregon sales.
Impact on corporations doing business in Oregon
Current Oregon Minimum Tax vs. Proposed Oregon Minimum Tax Under Measure 118
C corporations
| Annual Oregon Sales | Current Oregon Minimum Tax | Additional 3% tax on annual Oregon sales in excess of $25M under Measure 118 | New Oregon Minimum Tax Under Measure 118 |
| $5 million | $4,000 | None | $4,000 |
| $24.5 million | $15,000 | None | $15,000 |
| $25.5 million | $30,000 | $15,000 | $45,000 |
| $35 million | $30,000 | $300,000 | $330,000 |
| $50 million | $50,000 | $750,000 | $800,000 |
| $75 million | $75,000 | $1,500,000 | $1,575,000 |
| $100 million | $100,000 | $2,250,000 | $2,350,000 |
| $150 million | $100,000 | $3,750,000 | $3,850,000 |
S corporations
| Annual Oregon Sales | Current Oregon Minimum Tax | Additional 3% tax on annual Oregon sales in excess of $25M under Measure 118 | New Oregon Minimum Tax Under Measure 118 |
| $5 million | $150 | None | $150 |
| $24.5 million | $150 | None | $150 |
| $25.5 million | $150 | $15,000 | $15,150 |
| $35 million | $150 | $300,000 | $300,150 |
| $50 million | $150 | $750,000 | $750,150 |
| $75 million | $150 | $1,500,000 | $1,500,150 |
| $100 million | $150 | $2,250,000 | $2,250,150 |
| $150 million | $150 | $3,750,000 | $3,750,150 |
Additional Resources
Information on Measure 118 (formerly Initiative Petition 17) from the Oregon Secretary of State website
- Sept. 19, 2022 Initiative Petition 17 Original Text
- Dec. 22, 2022 Initiative Petition 17 – Certified Ballot Title
- July 12, 2024 Draft Analysis Statement
- July 17, 2024 Oregon Legislative Revenue Office Analysis
- July 23, 2024 Draft Analysis Statement Updated
Related Events
- “What’s Brewing: Ballot Backfire—How Measure 118 Will Hurt Business & Consumers”
Bend Chamber Event
Tuesday, Sept. 17 from 5:00-7:30 p.m.at the Tetherow Resort Event Pavilion
- “September Policy Forum Breakfast: Measure 118”
Eugene Chamber Event
Thursday, Sept. 26th, 7:00-9:30 a.m.at the Eugene Country Club
