Broad Coalition Formed to Defeat Initiative Petition 17

SALEM, OR — Today, a broad, bipartisan coalition representing hundreds of large and small businesses, consumers, taxpayers and leading organizations from across Oregon announced its formal opposition to a costly ballot proposal to create a $6.8 Billion tax on sales in Oregon.

Initiative Petition 17 (IP 17) was qualified for the November 2024 ballot by the Oregon Secretary of State Elections Division on Wednesday, July 24. IP 17 will receive a ballot measure number once the Division completes its petition validation processes, likely in early August.

The backers of this enormous tax on sales, who funded the signature-gathering effort that led to certification, are California-based advocates for so-called “universal basic income” programs.

“Our coalition plans to run a robust campaign to inform voters about how IP 17 would make Oregon businesses less competitive and drive up costs even higher for Oregon consumers,” said Angela Wilhelms, president & CEO of Oregon Business & Industry, which represents over 1,600 large and small businesses that employ more than 250,000 Oregonians.

If passed by Oregon voters, IP 17 would impose a 3% tax on a corporation’s annual gross sales over $25 million. The measure is essentially a gross receipts tax: It taxes sales, not profits, and businesses would be forced to pay regardless of whether they were making a large profit, small profit, or were losing money.

“IP 17 would force hundreds of local, family-owned businesses to raise prices, cut jobs or shut down completely,” said Lori Olund, president of Miles Fiberglass & Composites, a family-owned business in Clackamas County.

IP 17’s tax would apply at every step in the production and selling process in Oregon. By the time an Oregon product went from raw materials to a manufacturer to a packaging company to a distributor and then to a retailer, it might be taxed five times. By the time a product reached the consumer, the measure’s regressive tax would have driven up costs far more than a typical sales tax.  

“IP 17 provides no exemptions for everyday essentials like food. This unfair tax on groceries will drive up costs for individuals, families and seniors at a time when Oregonians are struggling to pay bills and food insecurity is at an all-time high,” said Amanda Dalton, president & CEO of the Northwest Grocery Retail Association, which represents over 400 grocery retail store locations employing more than 44,000 people throughout Oregon.

“IP 17 would increase costs for people throughout Oregon, including our family farm,” said Angi Bailey, president of the Oregon Farm Bureau Federation. “The supplies and services we need to operate our farm will become more expensive, which will make it even harder for us to compete with farmers in other states and even other countries. That’s just part of the reason so many family farmers across Oregon oppose IP 17.”

Coalition members of Defeat the Costly Tax on Sales also include: (partial list)

• Oregon Business & Industry
• Oregon State Chamber of Commerce
• Oregon Association of Nurseries
• Oregon Bankers Association
• Oregon Dairy Farmers Association
• Oregon Farm Bureau Federation
• Oregon Medical Association
• Oregon Restaurant & Lodging Association
• Oregon Retail Council
• Oregon Trawl Commission
• Oregon Women for Agriculture
• Oregonians for Food & Shelter
• Northwest Grocery Retail Association
• Albany Area Chamber of Commerce
• Associated Builders and Contractors – Pacific Northwest Chapter
• Associated General Contractors Oregon
• Associated Oregon Loggers
• Astoria-Warrenton Area Chamber of Commerce
• Beaverton Area Chamber of Commerce
• Bend Chamber of Commerce
• Black Business Association of Oregon
• Douglas County Farmers Co-op
• Economic Development for Central Oregon
• Eugene Area Chamber of Commerce
• Far West Agribusiness Association
• Greater Portland Inc.
• Gresham Area Chamber of Commerce
• Manufacturing Council of Oregon
• Northwest Pulp & Paper Association
• Portland Metro Chamber
• Roseburg Area Chamber of Commerce
• Springfield Area Chamber of Commerce
• The Chamber of Medford and Jackson County
• The Dalles Area Chamber
• Washington County Chamber of Commerce
• West Coast Seafood Processors Association
• Western Wood Preservers Institute

For more information about IP 17 and our coalition, Defeat the Costly Tax on Sales, please visit CostlyTaxOnSales.com