SALEM, Ore. (AP) – A bipartisan group of state lawmakers has proposed broadly exempting agricultural businesses from a new business tax.
Democrats who pushed the new tax through the Legislature on party-line votes wanted to keep the 0.57 percent tax as simple as possible, with few exemptions or special rates for particular industries or businesses.
The Oregonian/OregonLive reports that the law already contains exemptions for groceries, gas, hospitals and long-term care businesses. The new agricultural carveout introduced on Monday is an example of the pressure lawmakers face going forward to create more industry-specific breaks.
The tax is calculated on a business’ annual sales above $1 million and is expected to eventually raise more than $1 billion a year. It takes effect in 2020.