House Bill 3427, which would tax business sales of more than $1 million, was delayed after Republican Senators didn’t show up for a floor session on Tuesday, denying Democrats the quorum needed to pass the bill as scheduled, The Oregonian/Oregonlive reported.
Democrats possess the 18 senators needed to pass the tax increase on a party-line vote, but need two Republicans present to attain a quorum of 20 senators.
The bill proposes to raise $2 billion for K-12 education every two years through a so-called "commercial activity tax” that would impose a 0.57 percent tax on gross receipts. It would allow each business to deduct 35 percent of the cost of goods sold.
OAN’s leadership has voted to oppose the tax structure in HB 3427 because it is especially damaging to high-volume, low-margin businesses such as nurseries, farms and manufacturers. It comes in the same session that Democrats are pushing a costly carbon cap-and-trade measure and a mandatory paid family leave scheme.
The OAN has asked members to contact their senators and urge a “no” vote on the bill. An action alert sent last week includes several talking points to consider using. Find your legislator. OAN also signed on to a letter by business groups opposed to the measure. Download it here.