Oregon tax revolt
Encyclopedia
The Oregon tax revolt
is a political movement in Oregon
which advocates for lower taxes. This movement is part of a larger anti-tax movement in the western United States
. The tax revolt, carried out in large part by a series of citizens' initiatives
and referendum
s, has reshaped the debate about tax
es and public services in Oregon.
The leaders of the tax revolt include Don McIntire, president of the Taxpayer Association of Oregon, and Bill Sizemore
, leader of Oregon Taxpayers United. Much of the money spent to promote these anti-tax measures were provided by out-of-state backers including Americans for Tax Reform
headed by Grover Norquist
.
in the neighboring state of California
, Oregon voters placed limits to property tax
in the Oregon Constitution
in 1990 with the passage of Measure 5
. A majority of voters were frustrated by the increase in property taxes attributed to rapidly rising property values in the Portland
area. Some attribute this home price inflation to an influx of population in the Portland
metro, which is surrounded by an urban growth boundary
that limits the supply of developable land. Others observe that the situation was much more complex, pointing to the loose monetary policy pursued by Alan Greenspan
, including adjustments to the CPI that measured homeowners equivalent rent instead of actual home price, a recovering economy in the region, and numerous other factors. Measure 5 shifted the burden of school
funding to the state (which levies an income tax
) and away from counties.
Measure 5 also equalized school funding throughout the state, which meant that schools in rural areas benefited while schools in Portland saw budgets reduced. The budgetary restraints caused by Measure 5 were responsible for funding cuts that were made in public schools and universities budgets.
, which attempted to cap the annual rate at which property taxes could rise. Measure 47 also instituted Oregon's double majority
rule, in which local tax levies could only pass in minor elections when voter turnout surpassed half of the registered voters. In November 1996, Measure 47 was passed by the Oregon voters 52.3% to 47.7%. Problems with the legal wording of Measure 47 caused the Oregon Legislature
to send Measure 50 to voters in 1997, which clarified Measure 47. During a special election in May 1997, Measure 50 was approved by the voters 55.7% to 44.3%.
, and other spending priorities during the late 1990s. Then Governor
John Kitzhaber
and the Republican leadership in the legislature clashed repeatedly over budget priorities.
In 2000, Don McIntire helped place Measure 8 on Oregon's ballot, which would have limited state spending to 15 percent of personal income for the previous biennium. Measure 8 was defeated by a margin of 43.5% to 56.5%. However, in the same election Oregonians enshrined the so-called "kicker check
"—a rebate check given to taxpayers in the event that state revenues sufficiently exceed forecasts—into the state constitution with Measure 86 which passed 62% to 38%.
Anti-tax activists defeated two proposals in 2003 and 2004 (Measure 28
and Measure 30
), which were referred to voters by the Oregon State Legislature to increase income taxes temporarily.
Sizemore's group ran into legal problems in 2002. Sizemore sparked the ire of several public employees unions with a series of initiatives aimed at reducing public employee pension
s and reducing their political power. The unions responded with the Voter Education Project
, which tracked signature gatherers hired by Sizemore to place measures on the ballot. After documenting instances of fraud
by signature gatherers, the Oregon Education Association
, a teachers' union, successfully sued Sizemore's organization under racketeering laws in 2003. The $2.3 million judgment against Oregon Taxpayer's United severely hurt Sizemore's ability to put measures on the ballot. The fraud allegations also led to the passage of Measure 26 in 2002, which prohibits the payment of signature gatherers on a per-signature basis, and was approved by voters 75% to 25%.
Tax activists generally claim that Oregon's government is wasteful and inefficient, arguing that the government could do better with less. They often highlight programs that they feel are unnecessary. Opponents of the tax revolt argue that passing tax decreases via ballot measure leads to short-sighted policy making, in which voters are enticed to vote with the revolt by lower tax bills and without thinking about the budget problems caused by reduced revenues.
Tax revolt
A tax revolt is a political struggle to repeal, limit, or roll back a tax.-1930s, The Great Depression:In the United States, the term "tax revolt" is sometimes used to refer to a series of anti-tax state initiative campaigns. The first significant wave of these campaigns was during the 1930s. The...
is a political movement in Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
which advocates for lower taxes. This movement is part of a larger anti-tax movement in the western United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The tax revolt, carried out in large part by a series of citizens' initiatives
Initiative
In political science, an initiative is a means by which a petition signed by a certain minimum number of registered voters can force a public vote...
and referendum
Referendum
A referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...
s, has reshaped the debate about tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
es and public services in Oregon.
The leaders of the tax revolt include Don McIntire, president of the Taxpayer Association of Oregon, and Bill Sizemore
Bill Sizemore
Bill Sizemore is a political activist in Redmond, Oregon, United States. Sizemore has never held elected office, but has nonetheless been a major political figure in Oregon since the 1990s. He is considered one of the main proponents of the Oregon tax revolt, a movement that seeks to reduce taxes...
, leader of Oregon Taxpayers United. Much of the money spent to promote these anti-tax measures were provided by out-of-state backers including Americans for Tax Reform
Americans for Tax Reform
Americans for Tax Reform is an advocacy group and taxpayer group whose stated goal is "a system in which taxes are simpler, flatter, more visible, and lower than they are today. The government's power to control one's life derives from its power to tax...
headed by Grover Norquist
Grover Norquist
Grover Glenn Norquist is an American lobbyist, conservative activist, and founder and president of Americans for Tax Reform...
.
National context and the passage of Measure 5
Inspired in part by Proposition 13California Proposition 13 (1978)
Proposition 13 was an amendment of the Constitution of California enacted during 1978, by means of the initiative process. It was approved by California voters on June 6, 1978. It was declared constitutional by the United States Supreme Court in the case of Nordlinger v. Hahn,...
in the neighboring state of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, Oregon voters placed limits to property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
in the Oregon Constitution
Oregon Constitution
The Oregon Constitution is the governing document of the U.S. state of Oregon, originally enacted in 1857. As amended the current state constitution contains eighteen sections, beginning with a bill of rights. This contains most of the rights and privileges granted in the United States Bill of...
in 1990 with the passage of Measure 5
Oregon Ballot Measure 5 (1990)
Ballot Measure 5 was a landmark piece of direct legislation in the U.S. state of Oregon in 1990. Measure 5, an amendment to the Oregon Constitution , established limits on Oregon's property taxes on real estate....
. A majority of voters were frustrated by the increase in property taxes attributed to rapidly rising property values in the Portland
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
area. Some attribute this home price inflation to an influx of population in the Portland
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
metro, which is surrounded by an urban growth boundary
Urban growth boundary
An urban growth boundary, or UGB, is a regional boundary, set in an attempt to control urban sprawl by mandating that the area inside the boundary be used for higher density urban development and the area outside be used for lower density development.An urban growth boundary circumscribes an...
that limits the supply of developable land. Others observe that the situation was much more complex, pointing to the loose monetary policy pursued by Alan Greenspan
Alan Greenspan
Alan Greenspan is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. He currently works as a private advisor and provides consulting for firms through his company, Greenspan Associates LLC...
, including adjustments to the CPI that measured homeowners equivalent rent instead of actual home price, a recovering economy in the region, and numerous other factors. Measure 5 shifted the burden of school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...
funding to the state (which levies an income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
) and away from counties.
Measure 5 also equalized school funding throughout the state, which meant that schools in rural areas benefited while schools in Portland saw budgets reduced. The budgetary restraints caused by Measure 5 were responsible for funding cuts that were made in public schools and universities budgets.
Measure 47 and the rise of Bill Sizemore
However, even with the caps on property taxes, the continual increase in property values in Portland, exacerbated by the effects of Measure 5, brought higher tax bills for some residents. This led to Bill Sizemore's Measure 47Oregon Ballot Measure 47 (1996)
Ballot Measure 47 was an initiative in the U.S. state of Oregon that passed in 1996, affecting the assessment of property taxes and instituting a double majority provision for tax legislation...
, which attempted to cap the annual rate at which property taxes could rise. Measure 47 also instituted Oregon's double majority
Double majority
A double majority is the name given to a vote which requires a majority of votes according to two separate criteria. The mechanism is usually used to require strong support for any measure considered to be of great importance...
rule, in which local tax levies could only pass in minor elections when voter turnout surpassed half of the registered voters. In November 1996, Measure 47 was passed by the Oregon voters 52.3% to 47.7%. Problems with the legal wording of Measure 47 caused the Oregon Legislature
Oregon Legislative Assembly
The Oregon Legislative Assembly is the state legislature for the U.S. state of Oregon. The Legislative Assembly is bicameral, consisting of an upper and lower house: the Senate, whose 30 members are elected to serve four-year terms; and the House of Representatives, with 60 members elected to...
to send Measure 50 to voters in 1997, which clarified Measure 47. During a special election in May 1997, Measure 50 was approved by the voters 55.7% to 44.3%.
Later legislation
The tax revolt manifested itself in a series of budget battles in the Oregon Legislature about school funding, the Oregon Health PlanOregon Health Plan
- History :The Oregon Health Plan was conceived and realized by emergency room doctor John Kitzhaber, then a state senator, and Dr. Ralph Crawshaw, a Portland activist....
, and other spending priorities during the late 1990s. Then Governor
Governor
A governor is a governing official, usually the executive of a non-sovereign level of government, ranking under the head of state...
John Kitzhaber
John Kitzhaber
John Albert Kitzhaber is the 37th Governor of Oregon. He served as the 35th Governor of Oregon from 1995 to 2003 and became the first person to be elected to the office three times when he was re-elected to a non-consecutive third term in 2010...
and the Republican leadership in the legislature clashed repeatedly over budget priorities.
In 2000, Don McIntire helped place Measure 8 on Oregon's ballot, which would have limited state spending to 15 percent of personal income for the previous biennium. Measure 8 was defeated by a margin of 43.5% to 56.5%. However, in the same election Oregonians enshrined the so-called "kicker check
Kicker (Oregon tax rebate)
The Oregon tax rebate, commonly referred to as the kicker, is a rebate given to both individual and corporate taxpayers in the U.S. state of Oregon when a revenue surplus exists. The Oregon Constitution mandates that the rebate be issued when the calculated revenue for a given biennium exceeds the...
"—a rebate check given to taxpayers in the event that state revenues sufficiently exceed forecasts—into the state constitution with Measure 86 which passed 62% to 38%.
Anti-tax activists defeated two proposals in 2003 and 2004 (Measure 28
Oregon Ballot Measure 28 (2003)
Measure 28 was a ballot measure, referred by the legislature of the U.S. state of Oregon in 2003. It would have created a temporary one-percent increase in Oregon's income tax. The tax was proposed as a way to overcome deficits to the state budget...
and Measure 30
Oregon Ballot Measure 30 (2004)
Ballot Measure 30 of 2004 would have created a surcharge on Oregon's income tax, raised the minimum tax corporations pay in Oregon income taxes, and made other changes to the tax code to increase revenues. Similar to the previous year's defeated Measure 28, it was proposed as a way to avoid state...
), which were referred to voters by the Oregon State Legislature to increase income taxes temporarily.
Sizemore's group ran into legal problems in 2002. Sizemore sparked the ire of several public employees unions with a series of initiatives aimed at reducing public employee pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
s and reducing their political power. The unions responded with the Voter Education Project
Voter Education Project
From 1962 to 1968, the Voter Education Project raised and distributed foundation funds to civil rights organizations for voter education and registration work in the American South...
, which tracked signature gatherers hired by Sizemore to place measures on the ballot. After documenting instances of fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
by signature gatherers, the Oregon Education Association
Oregon Education Association
The Oregon Education Association is the largest public education employees' union in the U.S. state of Oregon, representing more than 46,000 teachers and classified personnel. It has local affiliates in each of the state's 199 public school districts, and 8 community colleges...
, a teachers' union, successfully sued Sizemore's organization under racketeering laws in 2003. The $2.3 million judgment against Oregon Taxpayer's United severely hurt Sizemore's ability to put measures on the ballot. The fraud allegations also led to the passage of Measure 26 in 2002, which prohibits the payment of signature gatherers on a per-signature basis, and was approved by voters 75% to 25%.
Tax activists generally claim that Oregon's government is wasteful and inefficient, arguing that the government could do better with less. They often highlight programs that they feel are unnecessary. Opponents of the tax revolt argue that passing tax decreases via ballot measure leads to short-sighted policy making, in which voters are enticed to vote with the revolt by lower tax bills and without thinking about the budget problems caused by reduced revenues.
Notable figures in the Oregon tax revolt
- Don McIntire
- Bill SizemoreBill SizemoreBill Sizemore is a political activist in Redmond, Oregon, United States. Sizemore has never held elected office, but has nonetheless been a major political figure in Oregon since the 1990s. He is considered one of the main proponents of the Oregon tax revolt, a movement that seeks to reduce taxes...
- Loren ParksLoren ParksLoren Parks is a businessman from the U.S. state of Nevada. He previously lived in Oregon , and is the biggest political contributor in the history of that state. He has financed numerous ballot measure initiative petitions and campaigns since the mid-1990s...
- Ross Day
Timeline of ballot measures
- Measure 5 (1990)Oregon Ballot Measure 5 (1990)Ballot Measure 5 was a landmark piece of direct legislation in the U.S. state of Oregon in 1990. Measure 5, an amendment to the Oregon Constitution , established limits on Oregon's property taxes on real estate....
- Measure 47 (1996)Oregon Ballot Measure 47 (1996)Ballot Measure 47 was an initiative in the U.S. state of Oregon that passed in 1996, affecting the assessment of property taxes and instituting a double majority provision for tax legislation...
(initiative), Measure 50 (1997) (legislative referral) - Measure 8 (2000) (failed)
- Measure 86 (2000) (kicker)
- Measure 28 (2003)Oregon Ballot Measure 28 (2003)Measure 28 was a ballot measure, referred by the legislature of the U.S. state of Oregon in 2003. It would have created a temporary one-percent increase in Oregon's income tax. The tax was proposed as a way to overcome deficits to the state budget...
and Measure 30 (2004)Oregon Ballot Measure 30 (2004)Ballot Measure 30 of 2004 would have created a surcharge on Oregon's income tax, raised the minimum tax corporations pay in Oregon income taxes, and made other changes to the tax code to increase revenues. Similar to the previous year's defeated Measure 28, it was proposed as a way to avoid state...
(tax increase measures, defeated) - Measure 41 (2006)Oregon Ballot Measure 41 (2006)Oregon ballot measure 41 was one of two unsuccessful ballot measures sponsored by the Taxpayers Association of Oregon on the November 7, 2006 general election ballot...
and Measure 48 (2006)Oregon Ballot Measure 48 (2006)Oregon ballot measure 48 was one of two unsuccessful ballot measures sponsored by the Taxpayers Association of Oregon on the November 7, 2006 general election ballot. Measure 48 was an initiated constitutional amendment ballot measure...
(both failed) - Measure 59 (2008)Oregon Ballot Measure 59 (2008)Oregon Ballot Measure 59 was an initiated state statute ballot measure sponsored by Bill Sizemore that appeared on the November 4, 2008 general election ballot in Oregon...
(failed) - Measures 66 and 67 (2010)Oregon Ballot Measures 66 and 67 (2010)- See also :* List of Oregon ballot measures* Oregon tax revolt- External links :* and on Ballotpedia....
(tax increase referenda, passed)
External links
- Embattled anti-tax advocate Bill Sizemore under fire again
- Taxpayer Association of Oregon
- Oregon Territory program on the tax revolt Part 1 Part 2(m3uM3UM3U is a computer file format that stores multimedia playlists. It is supported by many applications.An M3U file is a plain text file that specifies the locations of one or more media files. Each line carries one specification...
audio stream) - Fund Oregon's Future Today
- The Great Tax Revolt of 1994: Will anti-tax initiatives sweep the states this fall? from October 1994 Reason magazine