Senate Bill 1528 would result in over $1 billion in small business taxes over the next five years
Legislation headed to Gov. Kate Brown could nullify the state-level effects of the White House’s signature tax cut bill for Oregon small-business owners. And NFIB wants it vetoed, arguing Senate Bill 1528 will shortchange the state’s 400,000 small-business owners.
“This [bill] is producing a considerable amount of revenue for the state and it’s going to come from somewhere, and it is from small businesses,” NFIB/Oregon State Director Anthony Smith told Oregon Public Broadcasting.
According to the Portland Tribune, “tax deductions created by federal tax law are available on state tax returns unless those provisions are specifically disconnected from Oregon law. Senate Bill 1528 disconnects Oregon law from a federal deduction for owners of [pass-through businesses]….Federal reforms passed in December will allow owners of those businesses — such as sole proprietorships, partnerships, LLCs and S-corporations — to deduct up to 20 percent of their income from their 2018 tax return.”
SB 1528 prohibits Oregonians from taking the new deduction on their state income taxes, a decision that the non-partisan Legislative Revenue Office projects will generate $244.4 million for the current state budget and well over $1 billion by 2023. This revenue is in addition to more than $1 billion in new revenue that the state expects to come in as a direct result of federal tax reform.
NFIB/Oregon has called on the Gov. Brown to veto the bill, and is urging NFIB members to do the same.
“We’re still deciphering the implications of this legislation on Oregon and we’re going to do lots of work before making a decision whether to sign or veto the bill,” Gov. Kate Brown told The Oregonian/OregonLive. She must make a decision by mid-April.
For more information on this legislation, listen to NFIB State Director Anthony Smith’s recent radio interview on KYKN 1430 AM.
