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June 24, 2024

Potential Oregon ballot measure would impose an additional 3% minimum tax on corporations with gross sales over $25 million

Initiative Petition 2024-17 (IP-17), currently being circulated in Oregon for consideration on the November 5, 2024, ballot, would impose a new 3% minimum tax on corporations gross sales exceeding $25 million starting in 2025 if approved by voters.

The new corporate minimum tax would be in addition to the current minimum tax regime imposed under ORS 317.090 and stipulated in OAR 150-317-0170. Like the current minimum tax regime, Oregon sales would have the same meaning as the sales factor numerator under the state's corporate income tax apportionment provisions, including applicable special industry apportionment.

No credits or deductions could be taken against this new minimum tax. As an example of how this additional minimum tax would apply, a taxpayer with $100 million in Oregon sales reported in its sales factor numerator would be subject to a minimum tax of $2.35 million — $100,000 from the current minimum tax and an additional $2.25 million from the proposed new additional minimum tax.

The potential ballot measure would also amend treatment of S corporations under the minimum tax regime, removing the current $150 minimum tax limitation for S corporations with Oregon sales exceeding $25 million.

Proceeds from the new minimum tax would be earmarked to provide additional rebates to individual taxpayers in Oregon, with proponents claiming each Oregon resident would receive $750 from the expected $3 billion in new revenue generated.


To be successfully included on the ballot, IP-17 must receive the requisite signatures1 by four months before the election, which would be a July 5, 2024. According to the Oregon Secretary of State's website, as of June 19, 2024, IP-17 is currently being circulated for signatures.

EY will continue to monitor the progress of IP-17 and issue additional Alerts as warranted.

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1 See Ore. Secretary of State, State Initiative and Referendum Manual (Rev. Jan. 2024).

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Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor