Potential Minimum Tax on Large Oregon Businesses to Fund Rebates

Prospective ballot measure in Oregon (IP-17) would impose a minimum tax of 3% on the gross sales of corporations that have at least $25m in Oregon sales.

• The new minimum tax would be in addition to the current minimum tax levied by Or. Rev. Stat. § 317.090(2)(a)—the minimum tax which ranges from $150 to $100,000 based on Oregon sales.
• Like the existing minimum tax, the new minimum tax cannot be offset by credits.
• Previously, the minimum tax on S corporations was limited to $150, IP-17 modifies this limitation to only apply to S corporations with less than $25m of Oregon sales; S corporations with at least $25m of Oregon sales would now be subject to both the current minimum tax under Or. Rev. Stat. § 317.090(2)(a), as well as the proposed minimum tax on 3% of Oregon gross sales.
• The proceeds from the new minimum tax would be used to distribute rebates to eligible Oregonians.

Please note that this is only an overview. Consult with your KBF service team, or find a KBF Tax professional here, for specific guidance.