Oregon tax revolt

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The Oregon tax revolt is a political movement in Oregon which advocates for lower taxes. This movement is part of a larger anti-tax movement in the western United States which began with the enactment of Proposition 13 in California. The tax revolt, carried out in large part by a series of citizens' initiatives and referendums, has reshaped the debate about taxes and public services in Oregon.

Contents

Major figures

The leaders of the tax revolt include Don McIntire, president of the Taxpayer Association of Oregon, and Bill Sizemore, leader of Oregon Taxpayers United. Much of the money spent to promote these anti-tax measures were provided by out-of-state backers including Americans for Tax Reform headed by Grover Norquist. [1]

Tim Knopp, a Republican lawmaker from Bend, was the main author of the “kicker” tax rebate and the later successful effort to place it in the Oregon Constitution. He is the former House majority leader and as of 2024, Senate Minority Leader.

National context and the passage of Measure 5

Oregon voters placed limits to property tax in the Oregon Constitution in 1990 with the passage of Measure 5. A majority of voters were frustrated by the increase in property taxes attributed to rapidly rising property values in the Portland area. Some attribute this home price inflation to an influx of population in the Portland metro, which is surrounded by an urban growth boundary that limits the supply of developable land. Others observe that the situation was much more complex, pointing to the loose monetary policy pursued by Alan Greenspan, including adjustments to the CPI that measured homeowners equivalent rent instead of actual home price, a recovering economy in the region, and numerous other factors.[ original research? ]

Measure 5 shifted the source of school funding to the state. Instead of property taxes, funding had to come from the General Fund. Oregon does not have a sales tax, so money had to be drawn from the General Fund - primarily via the state income tax). [2]

Measure 5 also equalized school funding throughout the state, which meant that schools in rural areas benefited while schools in Portland saw budgets reduced. [2] [3]

Measure 47

Measure 47, which attempted to cap the annual rate at which property taxes could rise. This was partly to moderate fast growing house prices in Portland. [3] Measure 47 also instituted Oregon's double majority rule, in which local tax levies could only pass in minor elections when voter turnout surpassed half of the registered voters. In November 1996, Measure 47 was passed by the Oregon voters 52.3% to 47.7%. [4] Problems with the legal wording of Measure 47 caused the Oregon Legislature to send Measure 50 to voters in 1997, which clarified Measure 47. During a special election in May 1997, Measure 50 was approved by the voters 55.7% to 44.3%. [5]

Later legislation

Bill Sizemore Bill Sizemore.jpg
Bill Sizemore

The tax revolt manifested itself in a series of budget battles in the Oregon Legislature about school funding, the Oregon Health Plan, and other spending priorities during the late 1990s. Then Governor John Kitzhaber and the Republican leadership in the legislature clashed repeatedly over budget priorities.[ citation needed ]

In 2000, Don McIntire helped place Measure 8 on Oregon's ballot, which would have limited state spending to 15 percent of personal income for the previous biennium. Measure 8 was defeated by a margin of 43.5% to 56.5%. [6] However, in the same election Oregonians enshrined the so-called "kicker"—a rebate to taxpayers when state tax revenues were 2% over forecasts—into the state constitution with Measure 86 which passed 62% to 38%. [7] Oregon is the only state with a”kicker.” [8] Originally sent to taxpayers as a check, it is now returned as a credit toward state income tax returns. In 2024, the “kicker” will be a record $5.6 billion. [9]

Anti-tax activists defeated two proposals in 2003 and 2004 (Measure 28 and Measure 30), which were referred to voters by the Oregon State Legislature to increase income taxes temporarily.[ citation needed ]

Sizemore's group ran into legal problems in 2002. Sizemore sparked the ire of several public employees unions with a series of initiatives aimed at reducing public employee pensions and reducing their political power. The unions responded with the Voter Education Project, which tracked signature gatherers hired by Sizemore to place measures on the ballot. After documenting instances of fraud by signature gatherers, the Oregon Education Association, a teachers' union, successfully sued Sizemore's organization under racketeering laws in 2003. [10] The $2.3 million judgment against Oregon Taxpayer's United severely hurt Sizemore's ability to put measures on the ballot. The fraud allegations also led to the passage of Measure 26 in 2002, which prohibits the payment of signature gatherers on a per-signature basis, and was approved by voters 75% to 25%. [11]

Tax activists generally claim that Oregon's government is wasteful and inefficient, arguing that the government could do better with less. They often highlight programs that they feel are unnecessary. [12] Opponents of the tax revolt argue that passing tax decreases via ballot measure leads to short-sighted policy making, in which voters are enticed to vote with the revolt by lower tax bills and without thinking about the budget problems caused by reduced revenues.[ citation needed ]

Notable figures in the Oregon tax revolt

Timeline of ballot measures

See also

Related Research Articles

Ballot Measure 5 was a landmark piece of direct legislation in the U.S. state of Oregon in 1990. Measure 5, an amendment to the Oregon Constitution, established limits on Oregon's property taxes on real estate. Its primary champion and spokesman was Don McIntire, a politically-active Gresham health club owner who would go on to lead the Taxpayers Association of Oregon.

<span class="mw-page-title-main">1978 California Proposition 13</span> Ballot initiative which capped property tax at 1% and yearly increases at 2%

Proposition 13 is an amendment of the Constitution of California enacted during 1978, by means of the initiative process. The initiative was approved by California voters on June 6, 1978 by a nearly two to one margin. It was upheld as constitutional by the United States Supreme Court in the case of Nordlinger v. Hahn, 505 U.S. 1 (1992). Proposition 13 is embodied in Article XIII A of the Constitution of the State of California.

Ballot Measure 47 was an initiative in the U.S. state of Oregon that passed in 1996, affecting the assessment of property taxes and instituting a double majority provision for tax legislation. Measure 50 was a revised version of the law, which also passed, after being referred to the voters by the 1997 state legislature.

<span class="mw-page-title-main">Bill Sizemore</span> American activist

Bill Sizemore is an American political activist and writer in Redmond, Oregon, United States. Sizemore has never held elected office, but has nonetheless been a major political figure in Oregon since the 1990s. He is considered one of the main proponents of the Oregon tax revolt, a movement that seeks to reduce taxes in the state. Oregon Taxpayers United, a political action committee he founded in 1993, has advanced numerous ballot initiatives limiting taxation, and has opposed spending initiatives. Sizemore made an unsuccessful run for Governor of Oregon in 1998. He also announced his intention to run for governor in 2010, but was indicted by the state on charges of tax evasion. The charges were later amended to failure to file tax returns.

<span class="mw-page-title-main">2006 Oregon Ballot Measure 48</span>

Oregon ballot measure 48 was one of two unsuccessful ballot measures sponsored by the Taxpayers Association of Oregon (TAO) on the November 7, 2006 general election ballot. Measure 48 was an initiated constitutional amendment ballot measure. Oregon statute currently limits state appropriations to 8% of projected personal income in Oregon. If Governor declares emergency, legislature may exceed current statutory appropriations limit by 60% vote of each house. This measure would have added a constitutional provision limiting any increase in state spending from one biennium to next biennium to the percentage increase in state population, plus inflation, over previous two years. Certain exceptions to limit, including spending of: federal, donated funds; proceeds from selling certain bonds, real property; money to fund emergency funds; money to fund tax, "kicker," other refunds were included in the provisions of the measure. It also would have provided that spending limit may be exceeded by amount approved by two-thirds of each house of legislature and approved by majority of voters voting in general election.

The Oregon tax rebate, commonly referred to as the kicker, is a rebate calculated for both individual and corporate taxpayers in the U.S. state of Oregon when a revenue surplus exists. The Oregon Constitution mandates that the rebate be issued when the calculated revenue for a given biennium exceeds the forecast revenue by at least two percent. The law was first enacted by ballot measure in 1980, and was entered into the Oregon Constitution with the enactment of Ballot Measure 86 in 2000.

The State Income Tax Repeal, also known as Massachusetts Question 1, was one of the 2008 ballot measures that appeared on the November 4, 2008 ballot in the U.S. state of Massachusetts. Voters were asked whether or not they approved of the proposed measure which, if it had passed, would have ended the 5.3% income tax in Massachusetts on wages, interest, dividends and capital gains. Ultimately, Massachusetts voters defeated Question 1 by a wide margin, with approximately 70% opposed versus 30% in favor.

<span class="mw-page-title-main">75th Oregon Legislative Assembly</span>

The 75th Oregon Legislative Assembly convened beginning on January 12, 2009, for its biennial regular session. All of the 60 seats in the House of Representatives and half of the 30 seats in the State Senate were up for election in 2008; the general election for those seats took place on November 4.

<span class="mw-page-title-main">2008 Oregon Ballot Measure 64</span> Ballot measure in Oregon

Oregon Ballot Measure 64 was an initiated state statute ballot measure on the November 4, 2008 general election ballot in Oregon.

<span class="mw-page-title-main">2008 Oregon Ballot Measure 58</span> Ballot measure in Oregon

Oregon Ballot Measure 58 was an initiated state statute ballot measure sponsored by Bill Sizemore that appeared on the November 4, 2008 general election ballot in Oregon. It was rejected by voters.

<span class="mw-page-title-main">2008 Oregon Ballot Measure 59</span> Ballot measure in Oregon

Oregon Ballot Measure 59 was an initiated state statute ballot measure sponsored by Bill Sizemore that appeared on the November 4, 2008 general election ballot in Oregon, United States. If it had passed, Oregon would have join Alabama, Iowa, and Louisiana as the only states to allow federal income taxes to be fully deducted on state income tax returns.

<span class="mw-page-title-main">2008 Oregon Ballot Measure 60</span> Ballot measure in Oregon

Oregon Ballot Measure 60 was an initiated state statute ballot measure filed by Bill Sizemore and R. Russell Walker. Sizemore referred to it the "Kids First Act." The measure appeared on the November 4, 2008 general election ballot in Oregon.

Loren Ernest Parks was an American businessman from the state of Nevada. He previously lived in Oregon, from 1957 to 2002, and was the biggest political contributor in the history of that state. He financed numerous ballot measure initiative petitions and campaigns from the mid-1990s. He also contributed heavily to races for prominent offices by his attorney, Kevin Mannix, a frequent chief petitioner of ballot campaigns.

<span class="mw-page-title-main">2006 Oregon Ballot Measure 41</span>

Oregon ballot measure 41 was one of two unsuccessful ballot measures sponsored by the Taxpayers Association of Oregon (TAO) on the November 7, 2006 general election ballot. If passed it would have allowed a state income tax deduction equal to Federal exemptions deduction to substitute for state exemption credit on a person's state income tax filing.

<span class="mw-page-title-main">2008 Oregon Ballot Measure 56</span>

Oregon Ballot Measure 56 or House Joint Resolution 15 is a legislatively referred constitutional amendment that enacted law which provides that property tax elections decided at May and November elections will be decided by a majority of voters who are voting in the relevant election. It repealed the double majority requirement passed by the voters in the 1990s via Measures 47 and 50, which requires that, for non-general elections, all bond measures can pass only when a majority of registered voters turn out.

<span class="mw-page-title-main">2010 Oregon Ballot Measures 66 and 67</span>

Measures 66 and 67 are two ballot referendums that were on the January 26, 2010 special election ballot in the US state of Oregon, which proposed tax increases on corporations and on households making US$250,000 and individuals making $125,000 to help balance the state's budget. The measures referred two bills passed by the Oregon state legislature on June 11, 2009, and signed by Governor Ted Kulongoski on July 20, 2009, to the voters for approval. They were approved and became effective February 25, 2010.

Massachusetts Question 3, filed under the name, the 3 percent Sales Tax Relief Act, appears on the November 2, 2010 ballot in the state of Massachusetts as an initiative. The measure, if enacted by voters, would reduce the state sales tax rate from 6.25 to 3 percent. The measure is being sponsored by the Alliance to Roll Back Taxes headed by Carla Howell. The measure would be enacted into a law 30 days after the election if approved by voters.

<span class="mw-page-title-main">2020 California Proposition 13</span> $15 billion bond initiative for educational facility maintenance

Proposition 13 was a failed California ballot proposition on the March 3, 2020, ballot that would have authorized the issuance of $15 billion in bonds to finance capital improvements for public and charter schools statewide. The proposition would have also raised the borrowing limit for some school districts and eliminated school impact fees for multifamily housing near transit stations.

<span class="mw-page-title-main">2020 California Proposition 19</span> Successful property tax ballot initiative

California Proposition 19 (2020), also referred to as Assembly Constitutional Amendment No. 11, is an amendment of the Constitution of California that was narrowly approved by voters in the general election on November 3, 2020, with just over 51% of the vote. The legislation increases the property tax burden on owners of inherited property to provide expanded property tax benefits to homeowners ages 55 years and older, disabled homeowners, and victims of natural disasters, and fund wildfire response. According to the California Legislative Analyst, Proposition 19 is a large net tax increase "of hundreds of millions of dollars per year."

References

  1. ↑ "Who Will Stop This Man". Willamette Week. Archived from the original on 13 Aug 2007.
  2. 1 2 Zusman, Mark (November 4, 2014). "Nov. 6, 1990: Voters approve Measure 5". Willamette Week. Retrieved 6 May 2020.
  3. 1 2 "A Brief History of Oregon Property Taxation" (PDF). Oregon Department of Revenue. Retrieved 6 May 2020.
  4. ↑ "Official Results, State Measure No. 47, November 5, 1996 General Election". Oregon Secretary of State. Retrieved 2008-05-17.
  5. ↑ "Official Results State Measure No. 50, May 20, 1997: Statewide Special Election". Oregon Secretary of State. Retrieved 2008-05-17.
  6. ↑ "November 7, 2000 General Election State Measure No. 8". Oregon Secretary of State. Retrieved 2008-05-17.
  7. ↑ "November 7, 2000 General Election State Measure No. 86". Oregon Secretary of State. Retrieved 2008-05-17.
  8. ↑ "Constitutional quirks are Oregon's political potholes". www.oregoncapitalinsider.com. Retrieved 2024-01-21.
  9. ↑ "Oregon's massive kicker is spurring a fresh look at the state's unique tax rebate law - OPB". www.opb.org. Retrieved 2024-01-21.
  10. ↑ Hamilton, Don (May 13, 2003). "Sizemore sees his troubles doubled". The Portland Tribune. Retrieved 2007-01-20.
  11. ↑ "November 5, 2002 General Abstract of Voters".
  12. ↑ "A Vision For Public Finance In Oregon" (PDF). Oregon Business Council Public Finance Task Force. April 15, 1998. p. 16. Retrieved 2008-05-17.
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