Oregon Measure 41, State Tax Deductions Equal to Federal Deductions Initiative (2006)
| Oregon Measure 41 | |
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| Topic Property and Taxes |
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| Type Initiated state statute |
Origin |
Oregon Measure 41 was on the ballot as an initiated state statute in Oregon on November 7, 2006. It was defeated.
A "yes" vote supported changing the "personal exemption" tax credit to a tax deduction by allowing taxpayers to claim a credit on their state income tax return for the amount of income tax paid to the federal government, reducing state tax revenue collection. |
A "no" vote opposed changing the "personal exemption" tax credit to a tax deduction by allowing taxpayers to claim a credit on their state income tax return for the amount of income tax paid to the federal government, reducing state tax revenue collection. |
Election results
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Oregon Measure 41 |
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| Result | Votes | Percentage | ||
| Yes | 483,443 | 37.13% | ||
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818,452 | 62.87% | ||
Text of measure
Ballot title
The ballot title for Measure 41 was as follows:
| “ | ALLOWS INCOME TAX DEDUCTION EQUAL TO FEDERAL EXEMPTIONS DEDUCTION TO SUBSTITUTE FOR STATE EXEMPTION CREDIT RESULT OF "YES" VOTE: "Yes" vote allows personal income tax deduction equal to total federal deduction for all exemptions to substitute for state exemption credit; reduces revenue to state. RESULT OF "NO" VOTE: "No" vote rejects allowing personal income tax deduction equal to total federal deduction for all exemptions to substitute for state exemption credit. SUMMARY: 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. ESTIMATE OF FINANCIAL IMPACT: 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 overtime 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 | ” |
Full Text
The full text of this measure is available here.
Path to the ballot
An initiated state statute is a citizen-initiated ballot measure that amends state statute. There are 21 states that allow citizens to initiate state statutes, including 14 that provide for direct initiatives and nine (9) that provide for indirect initiatives (two provide for both). An indirect initiated state statute goes to the legislature after a successful signature drive. The legislatures in these states have the option of approving the initiative itself, rather than the initiative appearing on the ballot.
In Oregon, the number of signatures required for an initiated state statute is equal to 6% of the votes cast in the last gubernatorial election. A simple majority vote is required for voter approval.
See also
External links
Footnotes
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State of Oregon Salem (capital) |
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