From Anthony Smith, Oregon state director for the National Federation of Independent Business, on today’s revenue forecast. Every three months, Oregon’s Office of Economic Analysis provides the State Legislature with an update on projected tax revenues. Since the December 2022 forecast, combined resources for the 2021-23 and 2023-25 budget cycles have increased by $696 million.
“State revenues are up again,” said Smith, “and now that legislators have several hundred million dollars to work with for the state’s next budget, now is the time to provide tax relief for Oregon’s small businesses that are still facing a variety of economic challenges, including supply-chain issues, inflation, and a very tight labor market.
“The Corporate Activity Tax (CAT) and Oregon’s estate tax (death tax) are two tax policies in need of some practical revisions. Thankfully, both the House and the Senate have already held public hearings on several bills that would make a big difference for Oregon’s small businesses without substantially impacting the state’s overall fiscal outlook.”
Brief Background
NFIB supports raising the CAT filing and exemption threshold to reduce the economic impacts of the state’s gross receipts tax, which businesses with sales in Oregon of $1 million or more are required to pay whether they make a profit or not. Public hearings have already been held on HB 2433 and SB 127.
NFIB also supports reforming Oregon’s estate tax by increasing its lowest-in-the-nation exemption threshold of $1 million. As a comparison, the federal estate tax exemption threshold is $12.92 million for 2023. Public hearings have already been held on HB 2624 and SB 498.
From the Oregon Office of Economic Analysis
“Personal and corporate tax collections continue to outstrip expectations. When combined with an improved economic outlook, policymakers are expected to have additional General Fund revenues during the current legislative session as they craft the 2023-25 budget.”
