On Monday, the Oregon legislature approved a Gross Receipts Tax which members of the Ag community say will hurt the industry across the state.  The bill, which now heads to Governor Kate Brown, among other things issues a tax on gross revenue.  Jerome Rosa, executive Director of the Oregon Cattlemen’s Association said the new bill will levy 0.57% (slightly more than ½%) on every $1 million.

 

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“So, that’s about $5,700 on $1 million of gross revenue.  It doesn’t matter if you’ve lost money or made money, you’re going to be paying that.  And this really hits the agricultural sector.”

 

Rosa said the issue angered minority Republicans so much, that many walked out of Salem for a week, meaning the issue could not be voted on.

 

So, what does this mean moving forward?  Rosa said the state is going to lose some businesses, it will lead to additional consolidation and he say many farms will pull up stakes and move out of Oregon.

 

“[We’ve heard this for years from eastern Oregon ranchers] They are far better off to move their businesses to Idaho.  Because with what they see in the business structure in the state of Washington, in the state of Oregon, and the state of California, it makes it extremely tough to do business in these states.  And they look across the border to our east and they see a state like Idaho where it is much more of a friendly business environment.”

 

Rosa said authors of the bill were able to get support in the general population by lowering individual income taxes.  He added the Ag community asked for an exemption but that request was denied.

 

 

 

 

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