View source for Oregon tax revolt

{{Original research|date=September 2007}}
{{UStaxation}}
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 [[the West (U.S.)|western]] [[United States]] which began with the enactment of [[1978 California Proposition 13|Proposition 13 in California]]. The tax revolt, carried out in large part by a series of [[Popular initiative|citizens' initiatives]] and [[referendum]]s, has reshaped the debate about [[tax]]es and public services in Oregon.

==Major figures==
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]].<ref>{{cite news|url=http://www.wweek.com/html/leada060700.html|work=Willamette Week|title=Who Will Stop This Man|url-status=dead|archive-url=https://web.archive.org/web/20070813015358/http://www.wweek.com/html/leada060700.html|archive-date=13 Aug 2007}}</ref>

[[Tim Knopp]], a Republican lawmaker from Bend, was the main author of the “kicker” tax rebate and the later successful effort to place it in the Oregon Constitution. He is the former House majority leader and as of 2024, Senate Minority   Leader.

== National context and the passage of Measure 5 ==
Oregon voters placed limits to [[property tax]] in the [[Oregon Constitution]] in 1990 with the passage of [[Oregon Ballot Measure 5 (1990)|Measure 5]]. A majority of voters were frustrated by the increase in property taxes attributed to rapidly rising property values in the [[Portland, Oregon|Portland]] area. Some attribute this home price inflation to an influx of population in the [[Portland, Oregon|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.{{Original research inline|date=September 2007}}

Measure 5 shifted the source of [[school]] funding to the state. Instead of property taxes, funding had to come from the General Fund. Oregon does not have a sales tax, so money had to be drawn from the General Fund - primarily via the state income tax).<ref name="lookback">{{cite web|url=https://www.wweek.com/portland/article-23428-nov-6-1990-voters-approve-measure-5.html|date=November 4, 2014|title=Nov. 6, 1990: Voters approve Measure 5|work=Willamette Week|first=Mark|last=Zusman|access-date=6 May 2020}}</ref>

Measure 5 also equalized school funding throughout the state, which meant that schools in rural areas benefited while schools in Portland saw budgets reduced.<ref name=lookback/><ref name=state>{{cite web|url=https://www.oregon.gov/DOR/programs/gov-research/Documents/303-405-1.pdf|title=A Brief History of Oregon Property Taxation|publisher=Oregon Department of Revenue|access-date=6 May 2020}}</ref>

== Measure 47 ==
[[Oregon Ballot Measure 47 (1996)|Measure 47]], which attempted to cap the annual rate at which property taxes could rise. This was partly to moderate fast growing house prices in Portland.<ref name=state /> 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%.<ref>{{cite web
 | url = http://records.sos.state.or.us/ORSOSWebDrawer/Recordpdf/6873544
 | title = Official Results, State Measure No. 47, November 5, 1996 General Election
 | publisher = Oregon Secretary of State
 | access-date = 2008-05-17
}}</ref> Problems with the legal wording of Measure 47 caused the [[Oregon Legislative Assembly|Oregon Legislature]] to send [[Oregon Ballot Measure 50 (1997)|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%.<ref>{{cite web
 | url = http://records.sos.state.or.us/ORSOSWebDrawer/Recordpdf/6873547
 | title = Official Results State Measure No. 50, May 20, 1997: Statewide Special Election
 | publisher = Oregon Secretary of State
 | access-date = 2008-05-17
}}</ref>

== Later legislation ==
[[File:Bill Sizemore.jpg|thumb|upright|Bill Sizemore]]
The tax revolt manifested itself in a series of budget battles in the Oregon Legislature about school funding, the [[Oregon Health Plan]], and other spending priorities during the late 1990s. Then [[Governor]] [[John Kitzhaber]] and the [[United States Republican Party|Republican]] leadership in the legislature clashed repeatedly over budget priorities.{{Citation needed|date=February 2007}}

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%.<ref>{{cite web
 | url = http://records.sos.state.or.us/ORSOSWebDrawer/Recordpdf/6873548
 | title = November 7, 2000 General Election State Measure No. 8
 | publisher = Oregon Secretary of State
 | access-date = 2008-05-17
}}</ref> However, in the same election Oregonians enshrined the so-called "[[Kicker (Oregon tax rebate)|kicker]]"—a rebate to taxpayers when state tax revenues were 2% over forecasts—into the state constitution with [[Oregon Ballot Measure 86 (2000)|Measure 86]] which passed 62% to 38%.<ref>{{cite web
 | url = http://records.sos.state.or.us/ORSOSWebDrawer/Recordpdf/6873549
 | title =  November 7, 2000 General Election State Measure No. 86
 | publisher = Oregon Secretary of State
 | access-date = 2008-05-17}}</ref> Oregon is the only state with a”kicker.”<ref>{{Cite web |title=Constitutional quirks are Oregon's political potholes |url=https://www.oregoncapitalinsider.com/news/constitutional-quirks-are-oregons-political-potholes/article_a2891e0e-df3a-11eb-b8f8-87d11215d9c1.amp.html |access-date=2024-01-21 |website=www.oregoncapitalinsider.com|date=3 May 2023 }}</ref> Originally sent to taxpayers as a check, it is now returned as a credit toward state income tax returns. In 2024, the “kicker” will be a record $5.6 billion.<ref>{{Cite web |title=Oregon's massive kicker is spurring a fresh look at the state's unique tax rebate law - OPB |url=https://www.opb.org/article/2023/12/15/oregon-kicker-law-record-tax-spending/?outputType=amp |access-date=2024-01-21 |website=www.opb.org}}</ref>

Anti-tax activists defeated two proposals in 2003 and 2004 ([[Oregon Ballot Measure 28 (2003)|Measure 28]] and [[Oregon Ballot Measure 30 (2004)|Measure 30]]), which were referred to voters by the Oregon State Legislature to increase income taxes temporarily.{{Citation needed|date=February 2007}}

Sizemore's group ran into legal problems in 2002. Sizemore sparked the ire of several public employees [[labor union|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.<ref>{{cite news
 | last=Hamilton
 | first=Don
 | title=Sizemore sees his troubles doubled
 | url=http://www.portlandtribune.com/archview.cgi?id=18056
 | archive-url=https://web.archive.org/web/20040907180202/http://www.portlandtribune.com/archview.cgi?id=18056
 | url-status=dead
 | archive-date=September 7, 2004
 | work=The Portland Tribune
 | date=May 13, 2003
 | access-date=2007-01-20
}}</ref> 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%.<ref>{{cite web|url=http://records.sos.state.or.us/ORSOSWebDrawer/Recordpdf/6873550|title=November 5, 2002 General Abstract of Voters}}</ref>

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.<ref>{{cite web
 | url = http://www.orbusinesscouncil.org/docs/vision.pdf
 | title = A Vision For Public Finance In Oregon
 | publisher = Oregon Business Council Public Finance Task Force
 | pages = 16
 | date = April 15, 1998
 | access-date = 2008-05-17
}}</ref> 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.{{Citation needed|date=February 2007}}

== Notable figures in the Oregon tax revolt ==
* [[Bill Sizemore]]
* [[Loren Parks]]
* [[Tim Knopp]]

== Timeline of ballot measures ==
* [[Oregon Ballot Measure 5 (1990)|Measure 5 (1990)]]
* [[Oregon Ballot Measure 47 (1996)|Measure 47 (1996)]] (initiative), [[Oregon Ballot Measure 50 (1997)|Measure 50 (1997)]] (legislative referral)
* [[Oregon Ballot Measure 8 (2000)|Measure 8 (2000)]] (failed)
* [[Oregon Ballot Measure 86 (2000)|Measure 86 (2000)]] (kicker)
* [[Oregon Ballot Measure 28 (2003)|Measure 28 (2003)]] and [[Oregon Ballot Measure 30 (2004)|Measure 30 (2004)]] (tax increase measures, defeated)
* [[Oregon Ballot Measure 41 (2006)|Measure 41 (2006)]] and [[Oregon Ballot Measure 48 (2006)|Measure 48 (2006)]] (both failed)
* [[Oregon Ballot Measure 59 (2008)|Measure 59 (2008)]] (failed)
* [[Oregon Ballot Measures 66 and 67 (2010)|Measures 66 and 67 (2010)]] (tax increase referendums, passed)

== See also ==
*[[List of Oregon ballot measures]]

==References==
{{Reflist}}

==External links==
* [http://www.katu.com/news/story.asp?ID=64751 Embattled anti-tax advocate Bill Sizemore under fire again]
* [http://www.oregonwatchdog.com/index.php Taxpayer Association of Oregon]
* Oregon Territory program on the tax revolt [http://www.opb.org/programs/oregonterritory/audio/20031107a.m3u Part 1] [http://www.opb.org/programs/oregonterritory/audio/20031107b.m3u Part 2]([[M3U|m3u]] audio stream)
* [http://www.fundoregon.org/ Fund Oregon's Future Today]
* [http://www.reason.com/news/show/29530.html The Great Tax Revolt of 1994]: ''Will anti-tax initiatives sweep the states this fall?'' from October 1994 Reason magazine

{{Oregon Modern History}}
{{Oregon Brief History}}
{{Oregon legislation}}

{{DEFAULTSORT:Oregon Tax Revolt}}
[[Category:History of Oregon]]
[[Category:Politics of Oregon]]
[[Category:Taxation in Oregon]]