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SEDCOR Opposes $6 Billion New Tax on Oregon Sales

Tuesday, July 19, 2016  
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Unprecedented Tax Hike Would Hurt Oregon Small Businesses and Consumers


Strategic Economic Development Corporation (SEDCOR) has joined the coalition opposing Initiative Petition 28 (IP 28), a proposal that would impose a $6 billion tax on Oregon sales—the largest tax increase in state history.


Defeating IP 28 is a top priority for SEDCOR. We are asking our members to join the Defeat The Tax On Oregon Sales coalition to help battle this damaging and costly tax on sales that would do significant harm to the Oregon economy.


IP 28 would add a new 2.5% tax on the total Oregon sales—not profits—of businesses organized as C-Corps that generate $25 million or more in sales. Businesses would be required to pay the new tax whether they make a small profit, large profit, or no profit at all.  


IP 28 would impose the worst kind of tax on sales because it would be added at multiple steps in the production process – a “tax on a tax” – cascading into much higher prices for items Oregonians buy every day, without any exemptions. Electricity, fuel, insurance, food, transportation and many other products and services would be subject to the tax – making Oregon products more expensive and Oregon companies less competitive.


According to a study by the nonpartisan Oregon Legislative Revenue Office (LRO), the proposed tax would ultimately be paid by Oregon consumers in the form of higher prices on essential goods and services, costing the average Oregon household over $600 more per year and hitting low, middle and fixed income Oregonians the hardest. The LRO also found that IP 28 would result in the loss of over 38,000 private sector jobs.


“Because many of the businesses in Oregon that would be directly responsible for paying this new tax are heavily concentrated in retail, wholesale and utility sectors,” said Chad Freeman, SEDCOR President, “IP 28’s impacts would be felt throughout the supply chain and hit Oregon consumers especially hard – particularly those who can least afford it.”


Although IP 28’s sponsors claim that the initiative would provide funding for education, health care and senior services, the measure does nothing to guarantee that those expenditures would be made.  All of the revenue generated by IP 28 would be paid into the state General Fund, in essence giving legislators a blank check to spend billions of dollars as they please, with no accountability to Oregonians for how those tax dollars would be spent.


SEDCOR opposes IP 28 along with a group of economic development organizations representing a large geographic area and a majority of Oregon’s population base, including Economic Development for Central Oregon (EDCO), Greater Portland Inc. (GPI), and Southern Oregon Regional Economic Development, Inc. (SOREDI).  The boards of each non-profit organization voted unanimously to oppose the measure.


“IP 28 sends a negative message to companies who are considering investments or expansion in Oregon," said Janet LaBar, president and CEO of Greater Portland Inc. "If passed, IP 28 would hinder business growth, job creation and the retention of existing jobs for Oregonians.  This threatens the future of economic development that is necessary for our state to thrive.”


To join the coalition, visit





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