Oregon Student Lobby backing sales tax proposal
By Lisa Kneefel
Emerald Associate Editor
The Oregon Student Lobby on Wednes
day endorsed a sales tax proposal package
that was introduced earlier this year by
Rep. Tony Van Vliet, R-Corvallls.
At a news conference in the Capitol
Press Room, OSL representatives
explained the organization's decision to
support House Joint Resolution 4 and relat
ed House Bills 2393 and 2394.
Brad Fields. Oregon State University
Student Body President and OSL Board
Chairman, said Van Vliet’s plan seems
most politically viable.
"After reviewing plans and analyzing
polls regarding a sales tax and tax reform
we decided to support (House Joint Res
olution) 4." Fields said. "We feel it is one
of the better tax plans structurally, and it
might have a chance of passing."
Brian Clem, state affairs task force direc
tor for ASUO and OSL board member, said
OSL's members believed singling out a tax
plan to support would be much more effec
tive than demanding tax reform in gener
al.
“We felt that it was important to get a
specific tax plan that’s tangible so that we
can get some accountability in the Legis
lature." Clem said.
If passed by the Oregon Legislature.
House Joint Resolution 4 would impose
a privilege tax on sales or use of tangible
personal property beginning Jan. 1.1994.
No percentage for the tax has been pro
posed If the tax is adopted, the determined
rate would be written into the state Con
stitution where it could be changed only
by voters.
Revenue generated by the sales tax
would replace property taxes for public
schools and community colleges lost to
1990’s Measure 5. It would also provide
funds to match federal dollars for the Ore
gon Health Plan.
Food, housing, some utilities, prescrip
tion medications, real property and intan
gibles (such as services) would be exempt
from the tax. Refunds would be available
for sales tax paid by lower income indi
viduals.
State personal income tax rales would
be reduced with adoption of the sales tax.
and local sales taxes would be prohibited
Related House Bill 2393 would reduce
the state personal income lax to distribute
the tax burden fairly and House Bill 2394
would provide the implementing legisla
tion for establishing the sales lax.
Because it would amend the Oregon
Constitution, the privilege tax would be
referred to voters at the general election in
1996. If not approved by voters, the tax
would be discontinued.
According to an explanation of the tax
package issued by Van Vliet's office, state
personal income tax rales would be
reduced by 11 percent or more with imple
mentation of the plan.
The decision to support Van Vliet's plan
was based on results from a survey con
ducted jointly by the Nelson Report. TH
Research and Moore Information. Clem
said.
The survey found that 45 percent of Ore
gon registered voters would support a sales
tax dedicated to funding education if
accompanied by a reduction in state per
sonal income taxes and immediate imple
mentation of property tax relief. The sales
tax rate would have to fall between 5 per
cent and 3.5 percent, and a "sunset clause"
providing for a re-vote would have to In*
included.
Van Vliet 's package includes all of those
We feel H Is one of the
better tmx plane
structurally, and It might
have a chance of
passing
Brad Fields.
OSL board chairman
elements. Clem said. making it more viable
for support.
Clem said OSL. which is a coalition of
state college and university student lead
ers that lobbies for higher education issues,
has been reluctant to endorse past sales
tax proposal* because thoy were regres
sive
"Van Vliefs (plan) eliminates some of
the regress!voltes* because it reduces the
income tax code by t percent." Clem said.
Mouse Joint Resolution 4 was introduced
Jan. iit and was subsequently referred to
the Mouse Revenue and School Finance
Committee.
or ‘[hr Ijtoflraphy
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