Oregon Ballot Measure 41, State Tax Deductions (2006)
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Measure 41 would have restricted the amount of money the Oregon government could raise through its state income tax, by allowing taxpayers to claim a credit on their state income tax return for the amount of money they paid to the federal government in income tax.
- Election results from Oregon Blue Book website, accessed December 13, 2013
Text of measure
Allows income tax deduction equal to federal exemptions deduction to substitute for state exemption credit.
The official ballot summary was:
This text is quoted verbatim from the original source. Any inconsistencies are attributed to the original source.
To determine taxable income for federal personal income tax, taxpayers generally may claim deduction ($3,100 maximum in 2004) for each exemption; exemption exists for taxpayer, spouse, each dependent. For state income tax purposes, taxpayers currently may not claim deductions based on federal return's exemptions but may subtract exemption credit ($151 in 2004, multiplied by number of federally-allowed exemptions) from state income tax liability. Measure authorizes a deduction on state income tax return for each dependent, taxpayer, and spouse claimed as exemption on federal return; the deduction shall be no less than total deduction for all exemptions on federal return; exemption credit may substitute for the deduction if lower tax results. Reduces revenue available for state expenditures; provides no replacement revenue. Other provisions.
The official estimated financial impact statement was:
This measure will reduce state budget revenues from personal income taxes. The reduction will be approximately $151 million for 2006-07. In 2007-08 the measure will reduce state budget revenues by $385 million and reduce the 2007 personal income tax "kicker" by $151 million. The measure will reduce state budget revenues $407 million for 2008-09 and $430 million for 2009-10. The annual impact will increase over time due to population growth and increases in the amount of the federal income tax personal exemption, which is indexed for inflation.
The measure will require $114,750 in state expenditures to pay for the cost of implementation.
The measure will have no direct financial effect on local government revenue or expenditures.
See Voters' Pamphlet for Explanation of this Financial Estimate.
Text of measure
The legislation proposed by Measure 41 was:
|“|| BE IT ENACTED BY THE PEOPLE OF THE STATE OF OREGON: The Oregon Revised Statutes shall be revised by adding the following section, which section shall read:
Section 1. On personal state income tax returns for tax years beginning on or after January 1, 2007, a deduction shall be allowed against income for each dependent, taxpayer, and spouse, lawfully claimed as an exemption on an Oregon taxpayer's federal income tax return. The total amount of the deduction allowed on the state income tax return shall not be less than the total amount of the deduction allowed for all exemptions on the taxpayer's federal tax return.
(a) Any legislative Act repealing or delaying implementation of all or part of this section, or decreasing the amount of the deduction enacted by this section shall be deemed to be a tax increase and subject to the supermajority requirement of the Oregon Constitution and the prohibition on attachment of an emergency clause to the Act.
(b) A taxpayer shall have the option of using the existing Exemption Credit, or a larger Exemption Credit adopted by the state legislative assembly, in lieu of the deduction set forth in this section, if the taxpayer would pay a lower tax using the Exemption Credit than by taking the deduction enacted by this section.
Abner J. Bobo, Carol A. Bobo and Russ Walker supported Measure 41
This measure was sponsored by the Taxpayers Association of Oregon in 2006.
Donors to the campaign for the measure:
- Parents Education Association PAC: $34,154
- Freedomworks Issues PAC: $22,211
- Total: $56,365
Donors to the campaign against the measure:
- Defend Oregon Coalition: $3,532,855
- School Employees Exercising Democracy: $352,398
- Nurses United PAC: $314,430
- Oregon Public Employees Union PAC: $76,962
- PAC 483: $8,132
- International Union of Operating Engineers Local 701 PAC: $718
- Total: $4,285,495
- Overall Total: $4,341,860
- Oregon 2006 ballot measures
- List of Oregon ballot measures
- 2006 ballot measures
- Procedures for qualifying an initiative in Oregon
- Laws governing the initiative process in Oregon
- Oregon State Senate
- Oregon House of Representatives
- Secretary of State voter guide including summary, fiscal statement, arguments for and against and more
- 2006 Election Results
- Voter Guide 2006
- 2006 Ballot Measure Details
- Detailed information on this initiative from the Secretary of State
- Oregon Secretary of State, Measure 41 voter guide, accessed December 13, 2013
- Oregon Secretary of State, "Text of measure 41 from voter guide," accessed December 13, 2013
- Almost Two-thirds of Ballot Measure Cash Comes from Out of State But Campaigns Vary in Terms of Local Control, published by Money in Politics Research Action Project, October 18, 2006
- Follow the money, "Donors
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