IP 28 Could Hurt Small Farmers

Voters in Oregon will have the opportunity to vote on a Gross Receipts Tax through Initiative Petition 28 this November.

Director of State and Public Policy for the Oregon Farm Bureau Jenny Dressler is concerned that this could hurt producers, particularly if they drive their produce to market.

“The tax is also going to drive up the cost of fertilizer, farming equipment and other necessities that farmers really need when they are producing crops because it’s going to pass down through those suppliers in different communities.”

The initiative would impose a 2.5 percent tax on Oregon gross sales that exceed $25 million, something that supporters believe will force large companies to pay a fair share of taxes to supply state programs.

Dressler said that the tax is on sales and not profit which means the tax burden could be passed down.

“While sales might be high, net profit is not going to necessarily reflect that and these companies or corporations are not going to be able, some of them, to make up that difference and at the end of the day consumers are going to be the ones to pay that difference.”

Dressler hopes that Oregon voters are able to look deeply at this measure and some of the possible effects and that there are more realistic ways to help the services mentioned in IP 28.