4A
FRIDAY, JANUARY 31, 2020
The Observer
OUR VIEW
Time to
exempt ag
from tax
Since it was passed by the Oregon Legislature last
year as part of its education reform package, we’ve
been hearing producers and vendors express con-
cerns over the state’s corporate activity tax.
The tax requires businesses that generate more
than $1 million annually to pay, in addition to their
regular income tax, a 0.57% tax on that “excess”
revenue. It is expected to raise $2.8 billion over the
2021-2023 biennium for schools.
It is a gross receipts tax.
The plan is similar to the ill-fated Measure 97, an
initiative petition voted down in 2016 that would
have imposed on “C” corporations an additional 2.5%
tax on gross receipts from sales in Oregon exceeding
$25 million. It would have raised $3 billion per two-
year budget cycle.
While the corporate activity tax is only slightly less
ambitious than Measure 97 in terms of the revenue
it seeks to raise, it sweeps far more businesses into
its net. C and S corporations, partnerships, sole pro-
prietorships and other entities are subject to the tax.
And any business that generates $750,000 in
revenue must register with the Oregon Department
of Revenue.
Advocates like the gross receipts tax because they
claim businesses use recognized deductions to avoid
corporate income taxes.
The biggest problem with a gross receipts tax is
that it must be paid regardless of whether the busi-
ness in question makes a profi t. High-volume, low-
margin businesses such as farming can be on the
hook for a big tax bill without making a dime.
The impact of the tax is cumulative, with each
vendor in a supply chain adding to its price to help
cover the cost. The end user of a product — a farmer
with a piece of farm machinery — pays the full load
without necessarily being able to pass that expense
along to whoever buys the crop.
The Legislature exempted out-of-state sales. In
theory that should work in favor of Oregon agricul-
ture, which sends as much as 80% of its product out
of the state. But in reality, agricultural exports are
often commingled — such as grain or berries that
are sold to the same processor or wholesaler. That
makes it diffi cult to certify what is actually exempt
from the tax at the farm level.
The Oregon Farm Bureau is lobbying to get the
Legislature to exempt agriculture from the tax. That
would clear up the confusion and would also create
an even playing fi eld between producers who often
don’t have a say on where their products are sold.
We wish it luck, for once the state latches onto a
tax dollar it is loath to let it go.
MY VOICE
Not fooled by the green-washing
M
itch Colburn of Idaho Power is
touting the benefi ts of B2H again,
but we’re not fooled. His latest pitch
is about economic development and
green-washing. What’s green-washing?
It’s when a corporation tries to sound
“green,” appealing to our concerns over
climate and the environment, when in
fact they do just the opposite.
Let’s start with his rosy economic
development comments. If you study
their application to the state, you’ll
learn that 245 jobs might be created for
about 4-6 months. Local people might
be hired for 25% of these jobs: “clearing
and road building, material haulers,
restoration, and security.” Perhaps the
long-term jobs could get as high as 10;
but that number is confi dential. Yes, a
maximum of 10 jobs.
Colburn hails the economic benefi ts
of hotel bookings and restaurant meals,
but for only four to six months. He
doesn’t mention the traffi c, dust and
noise from heavy equipment. Then he
promises millions of dollars in local
taxes, a pie in the sky number. Those
numbers have never been confi rmed by
state or county revenue offi cers.
While there certainly will be some
tax dollars, at what cost to you as a
consumer? At least $1.2 billion dollars
along with an additional 6.7% guaran-
teed profi t will come from ratepayers —
just for construction. Then, for as long
as the line is in use, your co-op (Bonn-
eville Power Administration) will have
to pay tariffs to use that “clean energy
pipeline.” More green-washing? Better
to call it “Idaho Power’s profi t pipeline.”
The real costs of the B2H have
never been calculated: private property
values diminished, tourism assets
reduced, invasive weed management
increased, lost income from farms and
About the author
Fuji Kreider of La Grande is a board
member of the Stop
B2H Coalition and a
retired community
health administrator
and international
development
consultant.
My Voice columns should be
500-700 words. Submissions
should include a portrait-type
photograph of the author. Authors
also should include their full name,
age, occupation and relevant
organizational memberships.
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grammar, taste and legal reasons.
We reject those published
elsewhere. Send columns to
La Grande Observer, 1406 Fifth St.,
La Grande 97850, fax them to 541-
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small timber producers, all generating
less in local income and tax revenues.
The intrinsic and qualitative costs:
viewsheds marred, Oregon Trail de-
faced, wildlife habitat ruined, hunting
grounds altered and recreation sites
disturbed, have not been calculated
and Idaho Power is counting on that.
They also count on the fact that em-
phasizing their touted short term “ben-
efi ts,” will distract from the permanent
negative consequences to our forests,
farms, homes and resources.
If Idaho Power were actually more
interested in a “green alternative” than
in “green cash,” they would be focusing
on different investments:
• Upgrade the current 230kv lines
YOUR PUBLIC OFFICIALS
City of La Grande: Mayor Steve Clem-
ents, City Manager Robert Strope; P.O. Box
670, La Grande, OR 97850; 541-962-1309;
fax 541-963-3333.
Union County Commissioners: Donna
Beverage, Matt Scarfo and Paul Anderes;
1106 K Ave., La Grande, OR 97850; 541-963-
1001; fax 541-963-1079.
Wallowa County Commissioners: John
Hillock, Todd Nash and Susan Roberts; 101 S.
River St., Room 202, Enterprise, OR 97828;
541-426-4543, ext. 11; fax 541-426-0582.
Elgin City Councilors: Mayor Allan Duffy,
501 N 11th St., 541-437-1016, mayor@
cityofelginor.org; Mary West, 260 N 5th Ave.,
541-805-0443, councilor3@cityofelginor.
org; Kathy Warren, PO Box 697, 541-786-
9611, councilor6@cityofelginor.org; Risa
Hallgarth, PO Box 525, 541-437-9462, coun-
cilor2@cityofelginor.org; Rocky Burgess,
800 N 14th St., P.O. Box 854, 541-786-2417,
councilor1@cityofelginor.org; David Reed,
1011 Detroit St., PO Box 368; 541-975-3306,
councilor4@cityofelginor.org; Ryan Martin,
councilor5@cityofelginor.org.
Enterprise City Councilors: Mayor Stacey
Karvoski, mayorofenterprise@gmail.com;
Jenni Word; Dave Elliott; Ashley Sullivan;
Micah Agnew; Larry Christman; Chris
Pritchard; 541-426-4196; mail to City of
Enterprise, 108 N.E. 1st Street, Enterprise,
OR 97828.
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to 345kv on the same poles with the
same corridor and enhance their fi re-
resiliency. Better for the climate and
our security.
• Partner with customers and use
our smart meters for more than just
paying bills. Smart meters can help in-
centivize reducing energy during peak
times and lots more. We could all work
together to do it.
• Partner with industrial customers
to use their steam (think frozen food
factories) to produce energy and reduce
their costs. But, Idaho Power doesn’t
want to partner with its customers.
• Investments should be made in
community solar projects or commer-
cial solar with battery storage near the
existing substations (smoothing renew-
able power on to the grid).
There are many alternative invest-
ments that would make us more resil-
ient and secure, and would be kinder to
our life and resources than a 300-mile
industrial scar on our landscape.
However, once again we have to read
Idaho Power’s public relations pitch
about B2H. Until Idaho Power dem-
onstrates support for a genuine “green
agenda” by building renewables in their
own backyard, creating green energy
jobs for local people, using Idaho’s sun,
wind and hydro-resources, we will not
be fooled by this green-washing.
We are East Oregonians working to
protect our land preserve our heritage.
It has taken a massive effort from
hundreds of people over multiple years,
and our resolve has not diminished.
We invite anyone who believes that the
resources, wildlife and people of this
state should take precedence over an
out of state, out-of-date, for-profi t utility,
to join our fi ght. For additional informa-
tion, visit: StopB2H.org.
541-963-3161
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