While Governor Kate Brown recently stated she would support Measure 97 (formerly known at IP28) economic organizations all over the state are opposing it. The board of the Klamath County Chamber of Commerce voted unanimously July 25 to oppose Ballot Measure 97 that would impose a new $6 billion tax on the sales of goods and services in Oregon — everything from food, clothing, cars and housing to gas, utilities, prescriptions and health care.
“Measure 97 unfairly taxes sales, not profits,” said Klamath County Chamber Board President Todd Andres. “Measure 97 creates a condition where businesses would have to pay a 2.5 percent tax on sales in Oregon even when they make no profit or lose money. That would especially hurt businesses that have slim profit margins, like grocery stores, medical clinics and farms.”
The board reviewed a recent study by the state’s nonpartisan Legislative Revenue Office (LRO). It concluded that about two thirds of this tax on sales would end up being paid by Oregon consumers through higher prices on nearly everything we buy — costing the average Oregon household more than $600 every year.
The LRO economists’ study also found the Measure 97 tax regressive, falling most heavily on those who can least afford the higher costs it would create for essential goods and services Oregonians buy every day.
The Chamber Board expressed particular concern that Measure 97 would be a hidden sales tax, a “tax on a tax” imposed at multiple levels — such as when a manufacturer sells to a distributor and a distributor sells it to a retailer and a retailer sells it to a customer. The customer doesn’t see the taxes that may have been paid at each of those levels, making the hidden tax in the price 5%, 7.5% or even 10% higher.
“Measure 97 would hurt all Oregon employers, large and small, by increasing their costs and making them less competitive,” Andres continued. “The LRO report estimated Measure 97 would reduce private-sector jobs in Oregon by more than 38,000. It’s a costly and damaging plan that would hurt our community and our state.”
The Chamber also joined the Defeat the Tax on Oregon sales coalition campaigning against Measure 97. More information is available at FactsAbout97.com.
The Klamath County Chamber of Commerce has served Klamath County since 1905. It is a member-based organization made up of businesses and individuals who work together with the Chamber to advance the civic, economic, industrial, professional, and cultural life of our county. Membership is available to businesses (including non-profits) and individuals. If you are interested in learning more about the Chamber, call (541) 884-5193 or visit the website at www.klamath.org.
