Oregon

Oregon's chief source of general revenue is the personal income tax, adopted in 1929; the tax has three brackets, ranging from 5% on taxable income up to $2,500 to 9% on taxable income above $6,250. A corporate income tax of 6.6% is also levied, with a $10 minimum tax. Oregon is one of five states without a general sales tax, but it does levy excise taxes on motor fuels, tobacco products, insurance premiums, public utilities, alcoholic beverages, pari-mutuels, and amusements. Oregon has a state inheritance tax and an estate tax tied to the federal exemption for state death taxes (which is scheduled to be phased out by 2007, which would cost Oregon an $46 million in revenues if the legislature does not act to preserve Oregon's estate tax). Death and gift taxes accounted for 1.3% of state collections in 2002. Severance taxes in Oregon include a forest products harvest tax, an oil and gas production tax, and privilege taxes on Eastern and Western Oregon timber. Other state taxes include various license fees and stamp taxes. There are no state property taxes. Instead they are collected exclusively by local governments. About 40% of total state and local revenue is collected at the local level.

The state constitution gives voters the right to vote on any substantial tax increase, either by the state or by local governments. State tax measures may be placed on the ballot by the legislature or by petition; local levies must be voted on yearly unless voter approval has been secured for a tax base that may increase by 6% a year without an additional vote.

The state collected $5.892 billion in taxes in 2002, of which 71.5% came from individual income taxes, 12.7% from selective sales taxes, 9.7% from license fees, 3.8% from corporate income taxes, and 0.6% from severance taxes. In 2003, Oregon ranked 39th among the states in terms of combined state and local tax burden, which amounted to about 9% of income.

The following table from the US Census Bureau provides a summary of taxes collected by the state in 2002.