Image provided by: Morrow County Museum; Heppner, OR
About Heppner gazette-times. (Heppner, Or.) 1925-current | View Entire Issue (March 8, 1979)
1 - V TEN The Gazette-Times, Heppner, Oregon, Thursday March 8, 1979 Salem Scene By Jack Zimmerman The Senate on Feb. 12 passed without opposition a measure that may become the final chapter in a portion of this state's 135-year history of taxation. It also points up the way Oregon's property tax system has evolved through the years and complexity of that evolu tion. The measure is Senate Bill 170, introduced at the request of the Department of Reve nue. Known in legislative parlance as a housekeeping bill, SB 170's major purpose is to remove references to inven tory taxes from Oregon tax law. It was prompted by House Bill 1214, enacted by the 55th Assembly in 1969. And that measure climaxed efforts over nearly 20 years to phase out what was and still is described as one of the most unfair, discriminatory types of taxation ever levied. From a philosophical stand point, even many opponents of the inventory tax phaseout in 1969 agreed that tax miserably failed the equity test law makers diligently seek to apply to all taxes levied in this state. HB 1214 became effective Aug. 22, 1969 and called for a gradual phaseout of the inven tory tax. It specified 5 per cent reductions in 1969-70 through 1972-73 and 10 per cent annual reductions until the phaseout is complete on Jan. 1, 1980. Its passage capped a concerted effort throughout the Sixties . for repeal of inventory taxes by the Oregon Retail Council division of Associated Oregon Industries and others. And one ,viight trace the movement amiost to the day in 1844 when members of Oregon's provis ional government levied its first tax. Intended to be paid voluntarily by earlier settlers, it levied a one-eighth of one per cent ad valorem tax on all improvements on town lots, mules, cattle, hogs, horses clocks, watches and merch andise for sale. At that particular time, the targets of the tax obviously represented existine vt dm. " ' '"' on ot equity was to intensify through the years. Aggravating the issue were a continuing series of exempt ions that tended to heap an increasing burden on steadily shrinking segment of the business community name ly, those businesses that by their nature were forced to maintain a sizeable inventory of goods on hand in order to do business. Documentation fur ther proved it was the only tax directly causing unemploy ment. By the 1960s the inventory tax was recognized as an inequitable burden seriously hindering the economy at almost every level of en deavor. While most lawmakers rec ognized its inequities, they were reluctant to give up a source of revenue that went largely to fund schools and other local government ser vices. The House of Repre sentatives in 1963 did approve a modified inventory tax phaseout bill but it failed to reach the Senate floor for a vote before that session ad journed. In 1965 another version was approved by both Houses and signed into law by then-Gov. Mark Hatfield. That measure provided for a partial phaseout of inventory taxes and the exemption was funded by a General Fund appropriation aimed at taking up whatever slack might result for local governments. The appropriation was ap proved in 1965 but was reduced below prescribed levels in the regular '67 session and slashed irrepar ably during a special session later that year as the state suffered dwindling income tax revenue. Phaseout proponents were forced to try again during the '69 session and their logic prevailed to the extent both Houses approved HB 1214 without attempting to fund the exemption through the Gener al Fund. How could this obvious source of revenue be re- Senate bill writes final chcptefou 'unfair tux placed? More simply than one might suppose. Oregon's in ventory tax was a serious deterrent to the establishment of new business and expansion of existing business and in dustry. The situation became even more critical as neigh boring states reduced or eliminated similar taxes. Most eastern industrialized states had long-since recog nized the problem and erased taxes on inventory. Each new repeal in other areas tended to blunt the competitive edge of Oregon's economy. Eliminating the tax here has been a major contributor to business expansion, industrial S. nunc Wl micvs wf bii v, yeww Oatinecl Breod Mrs. Wright's Breod 22.5-01. loot Brown & Serve Sinner Roils "M'2 0 CI Assorted Vorl,,i CJA for Li ref Mild Lucei.5 51 ---Jich J . . . ,...y...-. 2" M4 i &t& -f 15 diversification and attracting new business to the state, according to John Groupe, Director of the Department of Economic Development. Regional warehouse and dist ribution centers have become established in Portland, Uma tilla and Medford areas. The combined activity has expand Gronol Bran S v Mrs. Wright's Nut-like Flavor j 24-oi. loaf iot Bog inns Mrs. Wright's 10 Count Package 13,5 Ounce i for L Family Pak Dear Clows Date Filled Pastries - 18-oz. Pkg. i it 1 1 (Chicken of the Sea Tuna "r 69 ) White Chablis l Almaden Mt. Dinner Wine LCracIdiiig lose' !t Paul Masson . . Light, Dry If 750 ml j XT $53 r I Li 1 i L, I . 1 EPlicEieffes Ghirardelli Chocolate Bites 12.ot. 12-01 Pkg ed payrolls and produced significantly more income tax revenue for the General Fund. Lawmakers subsequently have been able to help local governments and ease the impact on other taxpayers by boosting corporate income taxes, greatly increasing basic school support, provid ing city-county revenue sharing and establishing' homeowner and renter tax relief. Although the years immedi ately following passage of HB 1214 saw repeated attempts to freeze the inventory tax phaseout or repeal it altogeth er, it appears unlikely current No. 1 . . Large -, m. KftiSSL. (P)(P) Valley" Ib.AS J Lettuce 289 Red Uof or Romoint , Cucisitibers LargtSrnn jf AQ m Stliit r Not Ho Mlor-T . Rhubarb Ttfldw Ht HtwM CO for Pit, Sonet ll.7 k u ii i n !!Sy Assorted Varieties Pkg. Li nonano rinoi i V irgsnici Pccnuts Sisnflovicr Seeds .Filcpc Oicsid Impend SovttMrn lollo 4.S4I. Nolloy'lSalaol OfV Droning Mt Margarine "V C( Wb.pkg. J noiuhiMM'i $ f 45 4-OLJdf I . J-HC. T0.lt 44 Jcsr Yccst - FIclschitiissiii,s Cool Vlhlp Q'c!oy'$ Chili Q Fever's FIsEced Qf.lJU Coffee Stum 40-ci. $17V log. or Hot . CeffM l4i. Jet Auortotf 6rlMll...l-lt. FD AnCHEOM$fl45 if ll ti M E AT n-o. con I . BrCi. CEien Ralston Bran Cereal SCI 23 J in 1 111111 1 11 1111 1 1 1 "v y j i xi i y i umi " nl m,iAj ''j XXA.iiiIji ' V.ini XA-f ' lawmakers will interrupt its total demise 10 months hence. ,The fact the phaseout was enacted in 1969 when the budgetary ending balance (surplus) was only $34 million and it stands at $273 million today reduces the likelihood of anyone resurrecting inventory taxes as a revenue source, , Pres. Jason Boe was primary sponsor of HB 1214 back in 1969 while serving as Minority Leader of the House. And Gov. Victor Atiyeh was a leading proponent of the phaseout throughout his long career in both House and Senate. . ITQipOtfD'QIOt? Sunkist Ruby Red Fruit Finest Variety I I (Each 15) M....J for SRealemon S34'At: 29 l.o l.lD.Snv.irj' M A Sohwoy Orono. Hall 51 W -f.IIIH9 UltV orGrop.'n-lt Gel. I it ii. c-w. trv Pfi IjAMMiilr Freih oa.1.d 1Mb. $138 W-rCUIIUIS l.g.orS.lt.4 l. I Fresh Cut Blooms ff l A t,.'ir suncn 01 iw R9- '1-28 Bun. 2 Litre -X. -K p Plus Dep. 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