Late last week, we were surprised when the Senate Finance & Revenue Committee pushed through a significant tax increase on small business with little fanfare or warning.
The committee passed Senate Bill 1528 on a 3-2 vote.
We are expecting the bill to be voted in the Senate shortly.
SB 1528 increases taxes on Oregon small business Sole Proprietors, LLCs and S-Corps by $181 million by disconnecting from the recently-passed 20% federal pass through deduction.
SB 1528 also includes provisions to eliminate most of the 2013 Grand Bargain 'Small Business Tax Cut' that was agreed to in 2013. The lower small business tax rates passed in 2013 are important to help Oregon small businesses stay competitive. And while some Sole Proprietors will benefit from reduced tax rates, the bill raises $30 million by increasing small business tax rates for those with business income over $250,000.
All told, SB 1528 is a $210 million increase in small business taxes.
Needless to say, we are surprised that the Committee chose to make small business bear the entire brunt of any revenue raising in 2018.
You can see the attached letters being submitted by OSCC and other business groups.
Please contact your SENATOR today and ask them to "Say NO to SB 1528."