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1985-09-17 - Voters Pamphlet - State STATE OF OREGON ' VO TERS PAMP HLET Special Election September 17, 1985 pF O * O 18 59 Compiled and Distributed by BARBARA ROBERTS Secretary of State State Capitol Salem,Oregon 97310 i INFORMATION GENERAL VOTER REGISTRATION Material on the state sales tax measure in your official 1985 You may register to vote by mail or in person if: Special Election Voters' Pamphlet includes the ballot title,the 1. You are a citizen of the United States. complete text of the proposed measure,an impartial statement 2. You will be 18 or older on election day. explaining the measure and its effect, and arguments filed by 3. You are a resident of Oregon. proponents and opponents.The page number for each item can IMPORTANT: You may register to vote if you meet the above be found in the table of contents page. qualifications, but you must be a resident of Oregon 20 days Oregon law requires the Legislature to submit one argument before you may vote. in favor of each measure it refers to the people. Citizens or ' You must reregister to vote if: organizations may also file arguments on state measures by 1. Your address changes for any reason, even within the same purchasing apace for$300 or by submitting a petition signed by precinct. 1,000 electors. No arguments supporting or opposing ballot 2. Your name changes for any reason. measures may be printed by the Secretary of State unless they 3. You wish to change political affiliation. have been submitted by one of these methods. IMPORTANT: You cannot change political party affiliation The Voters'Pamphlet has been compiled by the Secretary of within 20 days of the primary election. State since 1903,when Oregon became one of the first states to If you register to vote within 20 days of election day,you provide for the printing and distribution of such a publication.In must: 1909,the Legislative Assembly passed a law requiring pamphlets 1. Have been a resident 20 days prior to the election date. to include information on candidates. 2. Deliver to the appropriate county clerk or a person designated by One copy of the Voters'Pamphlet is mailed to every house- the county clerk a completed voter registration form and obtain a hold in the state. Additional copies are available at the State "Certificate of Registration." Capitol,post offices,courthouses,and other public buildings. IMPORTANT: If the county clerk receives your application more than ten days prior to election day,your certificate will be ABSENT VOTER mailed to you.During the final ten days before the election you must obtain the certificate in person.Certificates are issued by An absentee ballot application form and instructions have the county clerk or designated representatives until 8 p.m.on the been printed on the inside back cover for use by those persons day of the election. who will be unable to vote at the polls on election day. 3. Present and surrender your certificate to your new precinct on election day and sign it in view of the election board clerk.The If for any reason you will be unable to vote at the polls on certificate shall be considered part of the poll book and your nay election day, complete the form and mail it to your county will appear at the nett election. election officer today. VOTE BE A WELL-INFORMED VOTER. TUESDAY, SEPTEMBER 17, 1885. STUDY THE ISSUES. Polls open 8 a.m. to 8 p.m. TABLE OF CONTENTS Page Information .................................................................. 2 Measure No.1 BallotTitle................................................................ 3 CompleteText ........................................................... 3,4 Explanation ............................................................... 5 Arguments in Favor...................................................... 5-12 Argumentsin Opposition ................................................. 13-17 Absentee Ballot Information and Application ...................................... 19 2 Official 1985 Spacial Election Voters'Pamphlet CONTINUED Measure Non I STATE OF OREGON PF'S 3I UTION 4_-Referred to the F lectorsate of (3) The Legislative Ascenably by law arc iy exempt ot,hf r ateni�; j (,,-t goo lav t}an vi,,3r) I,e,islature 'to be voted on at the Special or transactions not included under subsection (2) ref this�a e#iot�_ » However,any bill _rantingexeripcion fro i the tax el minatangarc lleeIie ,`elterbex l", 19f5. exemption front the tax or proposuig a new taxable transaction and passed in trta sarue form b> both lac uses of the L.egiwlat.ive t OALL T TITLE Assembly after July 1, 1987, shall be referred to the elector, for - -, - -�- --- - -- their approval or rejection ~l J I- s l � (4) Notwithstanding sec too a 10, Article �I or section tans 2, A MENDS APPROVE �� 'rrm)5v1 SALES"spa � Articic:� kI of this t onst�atutaora 110 g tzeral retail ales and rise tax I FOR LOCAL EDUCATION,N, a S 0 1 shall be imposed by any county city,district or other municipal ( {?E^TIN• :hall people atnerad C errs§tit.ittierxi, corporation or political subdivision of this state, approve limited sales tax parti}illy repl�,cirz property e (5) Notwitlistanding Section `3a and 'la, rAetacle IX of t.hi�, :+ • -repl es reducing Piny Constitution, after providing for the cost of administration ,it (f luxe, for %thools corrtmun ty colleges,, I ire.(;rase.tirxialra r tesxeaa�i any refunds or credits authorized by law including<any c f the? ea I EXPLANATION-Alipxp-ses ralt?s tali liiw irJ hit2 described in suh,er,#:ioii; (6) and (7} of this sec:tx>n the proceeds i from any state general retodl sales end eise tax shall be set aside and I ,clareslu, t;staiar araa�it, es Ilan, rec�;icing izrocirrie, p a. used exclusively for the support of c onnnon arad union high elaool. ert,y.tixzzl r'.au-;.e�ri�ten(b Constitution to limit Wes" e.rraia fee Iavixtd consumed eras I, inec*ibal districts,education service e dzst:ns is which levy tames oti ba half of I :sit acs , tixarga, azities, real estate transactions,arii- a their tcsrraptanent school districts that. a of the day prior 9a7 the f r, ti effective date of this amendment:have no authority to establish a- i rai<als,4eertp-;in rax_supplies.Prohibits iotial alt3s# xis, t tax base, artd ccrm:nuralty college Ur cozcanrunity cc,llege sc;xvice i?irrwtr le>gislzatieazi f+ar administrative costs,tsax relief districts. f,Ja.ra xate;s and low inircrrris individuals,litniting state s ;nrlsng ere ts:e;;I'rczvit3s school disirict b35r " (h) From the proceeds )f the tax described it) aibs,ettinzi (t�) I it, ati rte inrre+ar< a.nd school lei= elpcticrszs- y of this section,the I,egisiative Assembly ;hall provide a Cris ount, ?vlit.3ra.a other changes. t offset, credit., rebind or other reimbursement c i administrative 11 IA'I`I;fl,F FINANCIAL.l I''3`7gt I'-°tea sag-T)t costs pied or incurred by retailers on acr:c>unt of the tax<eaacl shall tLa s all vide starts coilection on April 1,1986 of a thre �" furt;lier provide ales tan relief to low income individuals. I geeresazst retail sale,and use lax. luletYaeal C ra3ts, Trpr' (7) 'I he Legislative Assernbh shall prcavide for property tax i I aloes of food A).rid drugs,u�,ility'C0,4$,rent;lpttyme ntra, relief to residential renters, real property purchasea, animal purchases, certata"a SECTION 2. l otwithst.anding section 11,Article XI of this. i faunasul=aplieo,an other specific it>e„rl S Will riot be taxed; � Constitution,ar)d subject to section 6 of this Article,each school I tax is esxper ad to raise about 026 million in district;authorized to levy an ad valorem tax shall have a tax base F$wal year 11W,-1987 for the folltt`M119 it,emv, computed as follows: *$701.5 million (:vill be. used to Cut property tax an (1) In the first fiscal year in which nae�neys from tlae sales tax f taVer�gP staate wide crf<3 Iaere,Ient, on all clsasat=s cif described in section I of thus, Article are distributed,the tax base progaeriy. shall be r ither of the following amount �1 raillaoia will be used'for xc nice relief. (a) The t,x vase levied in t t previous -ar plus this excess *, 1w4 million will be t1sed*,,ra cut;ixadividual income operating levy for else precious Year,plus ix pc aierat«f the total tAxes by at;average of 9.7 perceiat. thereof,minus the sales tax moneys distributed to the district.for ON rot In ills m av ill be used to pay all car heart of the,shies that first fiscal year or tas;prji€I by families with a total incoznp of$177 (b) The average c f t.lie tax base plus execs op-rating levy levied for the two previous years, plus six percent of the ta,tal or leas' tliezeof,mucus the sales tax moneys distributes? o file district !`sir c2 million Will be used to pay the sta�tae s cost. tea that first fines ,Year. collect rill disburse tlta tax. rniilion will I3e used Lee repro liueiiaet�a pes.'ple (2) In the second fiscal year in which nicriiey s from the Sales � I for a dill cfiion is sales liar. tax described in section 1 of this Article are distributed, the tax base shall be either of the following amounts: (a) The tax base levied in the second previous,year phis the e It Resolved Ias ttie Legislative Assembly ere the State of excess operating to v for the second previo is year,plus 12 percent, f3re�eiia: of the total t-hereof,minus the sales tax moneys distributed to the district for that second fiscal year;or T'tts,Fl A€RAPH 1. The -sh tution e of she St,rife of Clregoi�a � (b) The average, of the tax oassc t>I" > excess oiler atutk levy j s,arneraded by creating a new Airtiale to be h'nown as Artacae IX A V thereof,ir in s the sac tax xi<>nny,dihtral,uteel tc�at}iI da.,r ct for ;at rl tit rr.,ad: that,second fiscal year. ARTICLE IX-A (:3) For the fiscal year next following and for all fiscal years SECTION l. t.1} The rate of any state general retail sales thereafter,the tax base of a school district authorized to levy an ad i d use tax shall not exceed five percent. valorem tax shall be determined under section 11 Article XI of to re.c sales tax money.,unc erpsectian 1 of this Article the lrer<e nt addve (2) AnY state general retail sates and use tax shall not apply J ed I under paragraph (arse f that for a c ar tract cut once c this Constitution e to the u s receipts from the sits of or the storage, use or )of subsection (. )or subsection (4) of rctaozi f ,ca i taniptaoi a of',food for homes consumption knedical or hospital 11. Article XI of this Constitution shall be three percent rather a;a,rvkc^s,pre�ci-ipdoo medications utility service=s tlir sole,lease thaaa six perreni,however,a school cl'i trim-shall not cast anx ''fisc al or Teroil of real property,animal life,animal feed,seed,plants or year prior to the fiscal year described it., subsection (7) of this I fercihz.er,all to the extent provided by Iwo,% {{{� official 1985 Special Election Voters'Pamphlet CONTINUED Measure No. 1 OREGONF section to determine its tax base under paragraph(a)of subsection increased accordingly and the tax base of the transferring school (2)of section 11,Article XI of this Constitution. district shall be decreased by the same amount.Except in the case (4) Notwithstanding subsections(1)and(2)of this section,if of a community college service or community college district specifically provided by the Legislative Assembly,the amount of annexation of territory not in an existing community college or tax base reduction of a school district from sales tax moneys may community college service district, subsection (4) of section 11, be increased, if there is a decrease in enrollment,or decreased,if Article XI of this Constitution does not apply to a school district. there is an increase in enrollment, by the rate of decrease or SECTION 6. If, after the effective date of this Article, a increase in the enrollment of the district. school district first provides a program for the education of its (5) Those sales tax moneys distributed to school districts to kindergarten children,the tax base of the school district shall be replace revenues used by the Legislative Assembly to provide increased by the percentage increase in its average daily mem- personal income tax relief shall not be used to reduce a tax base' bership occasioned by the addition of the kindergarten program. under subsections(1)and(2)of this section.The moneys to which The amount of the increase in the tax base shall be determined in this subsection refers shall not exceed 15 percent of the net the manner provided by law. proceeds of the sales tax,after refunds and credits. SECTION 7. As used in sections 2 to 6 of this Article, SECTION 3. Notwithstanding section 11,Article XI of this "school district"means a taxing unit providing public elementary Constitution,no school district authorized to levy an ad valorem or secondary education,or any combination thereof,within this tax shall be permitted to levy an ad valorem tax for other than Smm•"School district"includes an education service district and a capital expenditures in excess of the greater of its tax base,or the community college or community college service district. amount that, when combined with all other resources of the SECTION 8. In carrying out the purposes of section lc, district,would permit operating expenditures,or operating expen Article IX of this Constitution, the Legislative Assembly may ditures per student,no greater than the district's operating expen- provide for the computation of tax rates in such manner that ditures,or operating expenditures per student,for the prior year. reductions or offsets in levies occasioned by the implementation of SECTION 4. (1) An election of the question of a levy in sections 1 to 7 of this Article will not cause a diminution of funds excess of a tax base as provided under paragraph(b)of subsection otherwise available to pay the indebtedness incurred for a redevel- (3)of section 11,Article XI of this Constitution and limited under opment or urban renewal project.This section is repealed on July section 3 of this Article may be submitted to the electors of a 1,1996. school district only on the third Tuesday in September of any year SECTION 9. The Legislative Assembly shall establish a and may not apply to a fiscal year prior to the fiscal year to which limitation on the rate of growth in state general operating expendi- subsection(3)of section 2 of this Article first applies. tures,the rate to be measured by the rate of growth of personal (2) Notwithstanding subsection(5)of section 11,Article XI income throughout the state,as defined by law. of this Constitution,the question of establishing a new tax base by SECTION 10. Notwithstanding sections 1 and 28,Article a school district shall be submitted only on the third Tuesday in IV and section la,Article IX of this Constitution,House Bill 2010, May of any year and may not apply to a fiscal year prior to the as passed by the regular session of the Sixty-third Legislative fiscal year to which subsection(3)of section 2 of this Article first Assembly shall become law on the effective date of this amend- applies. ment. SECTION 5. The Legislative Assembly may provide that if I PARAGRAPH 2. The amendment proposed by this resolu- the financial responsibility of providing public elementary or tion shall be submitted to the people for their approval or rejection secondary education is transferred from one school district to at a special election held throughout this state on the date another, the tax base of the receiving school district shall be specified in House Bill 2192(1985 regular session). 4 Official 1985 Special Election Voters'Pamphlet CONTINUED Measure No. i OR GONE EXPLANATION ARGUMENT IN FAVOR Measure No. 1, among other provisions,amends the Oregon Con- Oregon must reduce income and property taxes!We must find a better stitution to limit any state general retail sales/use tax to 5% and to way to finance schools—limit government spending—create a fair tax dedicate net revenue from that tax to reducing local property taxes and system.We need to create a tax system that encourages the development state income taxes used for schools and community colleges.Except for of more jobs for our people,AND we must guarantee that taxes will not collection costs, sales/use tax revenue cannot be used to fund state increase unless the people vote to approve a change. government.The constitutional changes made by this measure can be Measure 1 does just that!Here's what you can expect: further changed only by vote of the people. Property taxes will be reduced an average of 35%. Measure No. 1 also makes effective House Bill 2010 which,among other provisions,establishes a 5%general retail sales/use tax. Income taxes will be reduced an average of 9.7%. CONSTITUTIONAL AMENDMENT Our schools will never close again because the people can no longer afford to pay the bill. Measure No.1: School districts will have a limit on what they can spend.Tax-bases(the • Limits state general retail sales/use tax to 5%. amount of property taxes paid)would not be allowed to grow more than • Exempts food for home consumption,medical or hospital services, 3% per year. The amount of property taxes paid to schools would he prescription medications, utility services, animal life,animal feed, approximately 55%lower than today. seed,plants or fertilizer;and sale,lease or rental of real property. State Government spending cannot grow faster than the incomes of • Requires vote of people to change statutory exemptions or add Oregonians. taxable transactions after July 1,1987. Measure 1 is a fair tax. • Requires reimbursement of retailers'coat of sales/use tax collection. • Requires sales tax relief for low income individuals. • No tax on the "necessities of life": food for home consumption, • Requires property tax relief for residential renters. prescription drugs and medical supplies, rents and mortgages, • Requires at least 85% of net sales/use tax revenues to be used for utilities,and gasoline. relief of property taxes which fund schools. • No tax on services such as car repairs,plumbing,and professional • Requires rest of net sales/use tax revenues (up to 15%) to relieve services. income taxes. • Renters will receive relief equivalent to that provided homeowners. • Forbids local governments from levying a general retail sales/use tax. • Low-income families will receive payments to offset the sales tax • Requires state government spending limit. they pay. • Sets the following new constitutional limits on schools and commu- • The total tax burden for many homeowners, renters,and low- nity colleges: income families will be less. Over 2-year transition, establishes new tax bases reduced by the • Retailers will be compensated for their costs of collecting the sales property tax share of relief. tax. Allows reduced bases to increase without vote of people by only 3% Measure 1 will bring jobs to our people. i per year instead of existing 6%of current tax base. • Business will find Oregon more attractive.Right now,other states Permits one election in May each year to increase tax base by more are grabbing jobs because of Oregon's high property and income than 3%. taxes,among the highest in the country. Prohibits a school district from levying more than its tax base for Measure 1 provides Constitutional protections against tax increases. operating purposes unless total spending or spending per student is • Simply put,the 5%tax rate can't be increased unless Oregonians no greater than prior year,in which case permits one special levy vote to do so. You won't find that guarantee in any other state. election(September)to bring spending to prior year's level. Again,Oregon proves to be the pacesetter. Allows vote on capital levies outside tax base. • No local government will be able to add on their own sales tax. COMPANION STATUTE:HOUSE BILL 2010 Measure 1 increases the number of people who pay taxes. • The best tax is a tax somebody else pays.The next best tax is one House Bill 2010: that forces everyone to share in the tax responsibility. • Establishes a 5%retail sales/use tag on goods effective April 1,1986. • Some Oregonians use loopholes to avoid paying income taxes. Services are not taxed. Others pay no income taxes because they earn their living in the • Defines sales and receipts subject to tax. underground economy, taking their wages in cash. These people • Defines additional exemptions from tax. will no longer be able to escape their tax responsibility. • Provides for administration,collection,audit and enforcement of tax. What's in it for you? • Limits elections on property taxes for local governments other than • property and income tax relief. school districts to two(May,September). • a better way to finance schools. • Reduces timber severance tax for Western Oregon from 6.5%to 5%; • a fair tax that protects those least able to pay and collects taxes for Eastern Oregon from 5%to 3.8%. from those who currently don't pay. • Sets state government spending limit based on growth of personal • a limit on the growth of government spending. income in Oregon. • jobs for Oregonians. • Creates State Economic Stabilization Fund if state tax revenues Specifically,a family of four,earning$25,000/year,living in a$50,000 exceed forecasts used to make the state budget. home, and spending less than $10,500 on taxable items would lower • Creates Sales Tax Levelling Fund to avoid fluctuations in revenues to their taxes under Measure 1. school districts. Vote"Yes"on Measure 1. • Earmarks further excess revenues for additional income tax relief. Joint Legislative Committee Members: Appointed by: Committee Members: Appointed by: Representative Dick Springer Secretary of State Senator Rod Monroe President of the Senate Representative George Trahern Secretary of State Representative Tom Throop Speaker of the House Senator Jane Cease President of the Senate Representative Ted Calouri Speaker of the House Representative Tony Van Vliet Speaker of the House (This Committee appointed to provide legislative argument in Hardy Myers Members of Committee support of the ballot measure pursuant to ORS 251.245.) (This Committee was appointed to provide an impartial explana- tion of the ballot measure pursuant to ORS 251.215.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. Official 1985 Special Election Voters'Pamphlet 5 CONTINUED ITATE Measure No. I OREGONF ARGUMENT IN FAVOR ARGUMENT IN FAVOR WHY DID THE LEAGUE OF WOMEN VOTERS OF OREGON Governor Atiyeh Supports CHANGE ITS MIND ABOUT THE SALES TAX?? Ballot Measure Number 1 The League believes that the social and economic future of Oregon As a lifelong Oregonian,I know how careful we are about making our depends upon a stable,balanced structure of taxation that is fair to decisions. Frequently,I deal with companies that are interested in all citizens.It should produce enough revenue to pay for the services bringing jobs to Oregon—and I have found they are just as careful Oregonians need. as you and I are. For more than 20 years,the League has studied state and local taxes. BALANCED TAXES CREATE JOBS We supported the local property tax until we saw the burden on Com anies often are homeowners and low income families become overwhelming. p wary about investing in a state, like Oregon, However,we recognized that property tax limitation measures whose property and income taxes are nationally among the highest. were not the answer. They agree our total taxes are not unreasonable,but they dislike the imbalance. We supported the state income tax as a progressive and fair source until two major problems occurred:the economic down- In its income taxes Oregon ranks third nationally, right up there turn and local governments'increased reliance on state income With New York.Our property taxes are higher than many other job- tax funds(property tax relief).The income tax needed help. seeking Western states — such as Washington, California and Colorado — that compete against us for business investments in We opposed or took no position on past sales tax proposals. new and expanded jobs. Now,as a result of our 1984 study,WE ARE CONVINCED THAT OREGON NEEDS A THIRD SOURCE OF REVE- These companies dislike Oregon's heavy dependence on the prop- NUE — THE SALES TAX. No tax system is perfect,but a erty tax for much the same reason you and I do. They know that balanced one is best. when times are bad,and they are not making a profit,their property The proposed sales tax meets most of the League's criteria for a good taxes continue.They do not like being put in a position of laying off tax because it will— workers to pay their property taxes.By balancing our taxes on Sept. 17,Oregonians can attract these job creating companies by: Provide revenue to reduce property taxes substantially. a slashing property taxes 35 Stabilize school financing while maintaining local control. g p p y percent statewide, reducing Oregon's national ranking to 22nd Protect citizens'control by requiring a vote on sales tax rate . cutting income taxes by nearly 10 percent changes. Address regressivity by providing renter and low income • and adopting a sales tax that is a model for fairness refunds. without increasing total taxes. Exempt essentials like home food, medicines, utilities, and It is for all these reasons and more that I changed a position I held rent. for 25 years. I can now personally urge you to vote for Ballot Measure#1. Be relatively economical to administer and difficult to evade. OREGONIANS CAN SEND A MESSAGE Distribute the tax burden more evenly,when combined with reduced income and property taxes. The world— literally—is watching.Employers both inside and THE LEAGUE OF WOMEN VOTERS URGES YOU TO VOTE outside of Oregon, including those in Japan and Europe, are watching us to see whether we will balance our taxes.Now is our YES! chance to send them a message. Submitted by: Kris Hudson,President of the By my"yes"vote on Sept. 17,I intend to send the message that I League of Women Voters of Oregon want to open new payroll windows for Oregonians. (Paid for by the League of Women Voters T of Oregon Tax Committee) JOIN ME—VOTE YES ON BALLOT MEASURE#1. (This space purchased for$300 in accordance with ORS 251.255.) GOVERNOR VIC ATIYEH Submitted by: Barbara Linhares People for a Better Oregon The printing of this argument does not constitute an endorse- P.O.Box 25690 ment by the State of Oregon, nor does the state warrant the Portland,OR accuracy or truth of any statement made in the argument. (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. 6 Official 1985 Special Election Voters'Pamphlet CONTINUED STATE OF Measure No. I OREGON ARGUMENT IN FAVOR ARGUMENT IN FAVOR BOB STRAUB Measure Number 1 Draws Bipartisan Support of FOR Statewide Officers A BALANCED TAX SYSTEM BARBARA ROBERTS BILL RUTHERFORD I urge you to vote yes for Ballot Measure 1. DAVID FROHNMAYER MARY WENDY ROBERTS A sales tax in Oregon will bring new jobs,better job security and Seldom,if ever,in Oregon's history has so significant an issue come strengthen our economy. along that also enjoys such widespread bipartisan support.a year and most of Orego- nians of every political persuasion recognize balancing Oregon's This measure will collect over$900 million taxes really is that important. this will be used to lower Oregon's property taxes.It also will be used Democrats, Republicans and independents support this measure. to lower our income taxes. Because Oregon has some of the highest property and income People who usually are on different sides of the political fence have taxes of any state in the nation,we not only penalize Oregonians lined up to support this measure. with high property taxes, but we discourage new industry from SUPPORT CROSSES PARTY LINES locating in Oregon. Even as you read this,members of both parties are working side by Part of this$900 million in new income which the sales tax would side to do whatever they canto explain this measure's importance to raise will be paid by tourists.They should pay their fair share when other Oregonians. they visit Oregon.We have all paid taxes traveling in their states. The measure to balance our taxes has the enthusiastic support of a Now they will do the same here. Republican Governor. And, it also enjoys the solid support of a Oregon will have a bright future with new jobs with expanded Democrat Secretary of State. At the same time, it also enjoys the Pacific Rim trade with a more reliable source of finance for support of the Republican State Treasurer and Attorney General,as education in Oregon and with adequate financial support to help well as,the Democratic Labor Commissioner,Mary Wendy Roberts. maintain a good quality of life in Oregon. The balanced tax measure has the solid commitment of the Demo- Your yes vote for Ballot Measure 1 is needed to help. cratic President of the Oregon Senate and Speaker of the House. Robert Straub, Both chambers of the Oregon Legislature approved this measure Former Oregon Governor with none of the rancor that has marked past tax debates. BALANCED TAXES ATTRACT JOBS Submitted by: Barbara Linhares People for a Better Oregon There must be a reason why so many people who think for P.O.Box 25690 themselves agree on this measure—there is. Portland,Oregon 97225 Each of these people has studied the measure fully,and all agree that this measure is good for Oregon. (This space purchased for$300 in accordance with ORS 251.255.) a It's good because it provides substantial property tax relief— 35 percent reduction in property taxes average statewide in the first The printing of this argument does not constitute an endorse- year. ment by the State of Oregon, nor does the state warrant the . It's good because it provides stable funding for our schools.Our accuracy or truth of any statement made in the argument. children won't face school closures because education is now overly dependent upon property taxes. It's good because it is a uniquely Oregon plan. It creates a balanced tax system that is fairer to everyone than the present system. And, it's "tamper-proof'with the basic provisions locked into the state constitution — protected from legislative amend- ments or change. Submitted by: Peoplle for la Better Oregon PO Box 25690 Portland,OR (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. 7 Official 1985 Special Election Voters'Pamphlet CONTINUED ITATI Measure No. I OREGONF ARGUMENT IN FAVOR ARGUMENT IN FAVOR WHY THE SALES TAX DESERVES YOUR SUPPORT Oregon's Top Educators As leaders of the 1985 Legislature,we made a promise. We would Speak Out offer Oregonians a realistic and equitable alternative to oppressively For Balanced Taxes high property and income taxes.We kept that promise;the sales tax VERNE DUNCAN,Superintendent of Public Instruction: package before you reflects this. It also represents much more. Viewed in light of our current tax The most painful part of my job these last ten years has been sharing in the struggles system, this proposal offers Oregonians the kind of balanced tax a the dozens of districts which each year risk closure because local system we've never had. It also offers the state a chance to better l voters are frustrated with their high property taxes. control its economic destiny. Oregonians last voted on a sales tax in 1969. Since then,our state Measure#1 will make that kind of risk to the education of our has undergone some profound changes.Bedrock industries that we young people a thing of the past.Measure ch will substantially cut once took for granted, such as the timber industry, individual and business property taxes. Schools will secure solid, lin rb now are strug- stable funding allowing them to better plan for the future. g' g just to survive. Small entrepreneurs, the backbone of our economy, find it increasingly difficult to expand in an uncertain The new, more balanced tax system contained in Measure #1 economic climate.Some have gone out of business altogether.Large means those who've escaped their fair share of Oregon taxes will now corporations look at our unbalanced tax system and decide not to chip in along with the rest of us.Tourists,for example,may well pay locate here. And some decide to leave Oregon for the very same enough each year to buy all the new textbooks required for every reason. public school in the state. Of course,no legislative proposal can please everyone,especially one We have held our own children hostage too long because we've that involves taxes.But take a hard look at what this plan will really been frustrated about property taxes. Measure #1 will allow us to do if it passes: assure the educational needs of our children will be met,and balance • Oregon will have the only truly "tamper proof'sales tax in out the burden of paying for schools. America.Locked into the Oregon Constitution,the 5 percent rate, WILLIAM E.(BUD)DAVIS,Chancellor of Higher Education: the major exemptions, assistance for low-income Oregonians and Oregon's colleges and universities have suffered for more than a renters,and other major provisions can only be changed by a vote of decade as Oregon has tried to lessen the load of high property taxes. the people. • Not a penny of the sales tax will be used for additional In the early 70's,Higher Education was funded at about 25%of government programs.All the net proceeds are dedicated to reduc- the state's General Fund. Now our share is about half that. Our ing property and income taxes. colleges and universities have suffered deep cuts to provide an Oregon's overall tax system would be fairer than it is now, increasing share of state income tax money for property tax relief. • Despite the hundreds of millions spent, Oregonians are still upset because the plan would reduce by an average of 35 percent the about high property taxes. unfairest tax of all,the property tax. • Public education will enjoy more stable funding. But in Measure #1 is the only permanent solution to the problem. exchange for that security,this plan would constitutionally impose Voting yes on Measure o will drastically cut property taxes and d far stricter limits on future property tax growth than those which guarantee to keep them down.But it also guarantees the state can now exist. return its attention to our Higher Education system while lowering state income taxes as well. On September 17,vote yes.For a balanced tax system.For a fairer With Measure #1, Oregon can have the kind of total quality tax system.For a tax system that will help us meet the challenges ahead. education system it needs and still be certain it lives within its means. VERA KATZ JOHN KITZHABER,M.D. MEASURE#I—GOOD FOR EDUCATION Speaker of the House President of the Senate TONY MEEKER Submitted by: Barbara Linhares Senate Minority Leader People for a Better Oregon PO Boa 25690 Submitted by: Barbara Linhares Portland,OR People for a Better Oregon P.O.Box 25690 Portland,OR 97225 (Tha space purchased for$300 in accordance with ORS 251.255.) (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the The printing of this argument does not constitute an endorse- accuracy or truth of any statement made in the argument. ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. 8 Official 1985 Special Election Voters'Pamphlet CONTINU Non 1 STATE OF ED Measure OREGON ARGUMENT IN FAVOR ARGUMENT IN FAVOR OREGON BUSINESSES SUPPORT BALANCED LABOR TAXES SUPPORTS Our Unbalanced Tax System Hurts Oregon's Economy BALANCED TAXES FOR OREGON Oregon is still struggling to recover from our worst recession BECAUSE IT MEANS JOBS! i since the Great Depression.We have not yet recovered all of the jobs Oregon, unlike most other states, has yet to rebound from the r we lost since 1979. crippling affects of a national recession.Lots of people have yet to go 1 Since the recession,states have greatly intensified their competi- back to work and prospects for significant job improvement are not tion for new jobs. Oregon must compete effectively if we want to great.But that can change! r increase the number of jobs available for Oregonians. Here are some facts to think about. Oregon has the third highest t Our unbalanced tax,system tends to detract from our ability to income tax in nation. Oregon has the 8th highest property tax — compete. Property taxes are very high and they must be paid tough when a person is out of work but property taxes still must be regardless of whether or not a business is profitable. High income paid.To the nation,Oregonians appear justifiably angry to their tax taxes have a chilling effect on other businesses seeking a state in situation and as a matter of fact,some Oregon companies have left which to expand.Consumption taxes are more controllable. the state because of it and taken jobs with them. ' Our unitary tax elimination has drawn significant foreign invest- ment to Oregon already. We need to take the bold step now to balance our tax system to encourage businesses of all kinds to When we vote yes on Ballot Measure 1 on September 17,we will be consider bringing jobs to Oregon. advertising nationwide that we want jobs. We will be telling the We Need to Stablilize Our Government Finance System nation that our angry property taxpayers won't be closing schools. Oregonians are unhappy with the current tax system. Property We will be telling them that we have defused the property tax time and income taxes are too high. The instability of our government bomb that prevents our communities from maintaining roads and finance system can be seen in the periodic closure of Oregon schools. streets, rebuilding bridges, building water and sewer systems and These closures that receive nationwide media coverage are bad generally laying the groundwork that brings jobs to Oregon.We will publicity for Oregon's business climate. be saying that we have a balanced property tax system that treats Oregon's businesses support a balanced tax system that Measure both individuals and business even handedly. #1 will provide to stabilize our government finance system without For all of us, a yes vote for Ballot Measure 1 will reduce both our increasing total taxes. property and income taxes. Unlike other states, major guarantees We Need More Control of Government Spending are in the state Constitution,only the voters can change them.This Measure#I will Constitutionally require that the State's spend- replacement tax is spent for strictly education.This guarantees that ing growth be no faster than the growth in Oregonians'total income. there will be significant property tax relief— 35 percent average That is a major benefit of this balanced tax proposal. statewide.Low income families and renters are treated fairly. Passage will also put in place a law to limit the number of times A BALANCED TAX SYSTEM FOR OREGON that local governments can request property tax increases to just two SIMPLY MEANS JOBS! per year.That is another major improvement included in Measure #1. VOTE YES ON BALLOT MEASURE 1 MEASURE#1 WILL IMPROVE OUR JOBS CLIMATE. Tom Whelan,Legislative Director BALANCE OREGON'S TAXES. Oregon State Firefighter's Council VOTE YES ON MEASURE#1. Submitted by: Barbara Linhares People for a Better Oregon Submitted by: L.W.Newbry P.O.Box 25690 Chairman of the Board Portland,Oregon 97225 Associated Oregon Industries P.O.Box 12519 Salem,OR 97309 (This space purchased for$300 in accordance with ORS 251.255.) (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the The printing of this argument does not constitute an endorse- accuracy or truth of any statement made in the argument. ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. Official 1985 Special Election Voters'Pamphlet 9 CONTINUED 10 Measure No. I OREGONF ARGUMENT IN FAVOR ARGUMENT IN FAVOR Metro Chambers of Commerce Oregon Seniors Back Balanced Taxes Support Oregon's senior citizens have paid taxes long enough to know one Balanced Tax System thing. When the politicians say"tax measure,"usually they mean Hundreds of Oregon businesses are members of our Chambers of "tax increase." Commerce. As representatives of these businesses,both large and So we were suspicious. small,the chambers are even more aware than most of the inequities We looked at this September 17 measure to balance our tax system of Oregon's current tax system. from every angle.And we asked the obvious question:"Who benefits We need a change. from this measure?" That's why the Portland and Beaverton Chambers of Commerce We learned senior citizens will benefit.We liked that.But,we also support Ballot Measure#1. learned we will not benefit at the expense of any other group. Ballot Measure#1 would limit the We began to relax. This, we concluded, is not your usual tax growth of government. measure.On the contrary.This measure balances taxes by substitut- ing revenue from a new tax for significant reductions in two existing Ballot Measure#I would provide a balanced tax system that would: taxes.And it does it dollar for dollar.None of our money is siphoned • Reduce property taxes by 35 percent across the state. off into new government programs. • Cut income taxes by almost 10 percent. Balancing our taxes means slashing property taxes by 35 percent • Be fair to all Oregonians. (that's a statewide average,by the way).We know how important All without increasing the total tax burden. that is to people struggling to get by on fixed incomes. Only the vote of Oregon's taxpayers could change tax rates. Balancing our taxes means a limitation on property taxes—written permanently into the state Constitution — that is the tightest we Ballot Measure#1 would mean that essential services—that help have ever even seen proposed. insure a healthy business environment—could plan and operate Balancing our taxes does mean a sales tax. We admit it, we were without fear of financial floundering. suspicious. But, to our surprise, we liked what we saw. This one Ballot Measure#1 would distribute the tax burden more equita- cannot be topped for fairness! bly. Think about day-to-day purchases(the basics of life).These will be A balanced tax system would help create a stable,healthy economy exempt from the sales tax: and jobs for Oregonians. ' Food for home consumption We urge you to vote YES on Ballot Measure#1 * Rent and mortgage payments Household utilities,including firewood Jerri Doctor, ' Gasoline and diesel for your car Beaverton Chamber of Commerce ' Newspapers and magazines Blanche Schroeder, ' Medical,dental,accounting and other services Portland Chamber of Commerce ' Prescription drugs and hospital bills ' And used mobile homes. Submitted by: Barbara Linhares This is a good measure.When we do pay a few pennies in sales tax, People for a Better Oregon we can smile knowing every penny is being used to reduce our P.O.Box 25690 property and income taxes. Portland,Oregon 97225 ON SEPT. 17 WE WILL VOTE FOR (This space purchased for$300 in accordance with ORS 251.255.) BALLOT MEASURE 1 Jack R.Barnes The printing of this argument does not constitute an endorse- Chairman Legislative Comm. ment by the State of Oregon, nor does the state warrant the Oregon State Council of Senior Citizens accuracy or truth of any statement made in the argument. Submitted by: Barbara Linhares People for a Better Oregon P.O.Box 25690 Portland,Oregon 97225 (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. 10 Official 1985 Special Election Voters'Pamphlet CONTINUED Measure No. I OR GONE ARGUMENT IN FAVOR ARGUMENT IN FAVOR There's a better way to treat our children Oregon's Than pitting them against angry taxpayers Small Businesses Favor Oregon's education system overly depends upon the property tax Balanced Taxes to pay the bill. Result, angry taxpayers have closed schools in Oregon. This happened not because the taxpayers thought their Small businesses are struggling in Oregon.High property taxes have schools cost too much.They thought property taxes were too high. been just as unfair to businesses as to homeowners.We must pay • Fact to focus on:Oregon's property tax is 8th high- those property taxes whether or not we make any profit just like est in the nationl homeowners must pay whether or not they've got a job. Ballot measure 1,the plan to balance Oregon's tax system,will Ballot Measure 1 reduces high property taxes for a significant reduce total property taxes by 35% average statewide and in no number of small businesses. That is why the Small Business instance less than 30%.But more importantly,the money raised is Advisory Committee to the state Economic Development Commis dedicated to education — public schools and community colleges. sion supports this measure to balance taxes.We anticipate that any It's an investment in Oregon's future—its youth. short term cost to small business will ultimately be offset by the long • Fact to focus on:Oregon's Balanced Tax Plan is one term benefits to the state's economy. of a kind. Unlike sales tax plans in other states,this plan is unique.Businesses Rumors to the contrary,this isn't a new tax. It is a Constitu- collecting the tax will be adequately compensated and both the tionally dedicated sales tax at a fixed rate. The money goes to Legislature and the Department of Revenue have worked with schools to reduce property tax.Only the people can vote to change it! retailers representatives in working out the details of collection. Like the rest of Oregon's tax system it's fair.Low income families— In the last four years, it's been difficult to develop new jobs here those on fixed incomes — are protected. The basic goods and because we're facing more than just a bad economy. Local govern- services everyone needs are exempt from this tax plan and these went services businesses rely on—like police and sewers and local exemptions are guaranteed in the Constitution. schools — have been sharply cut back. But local taxes have been • Fact to focus on:This is a plan to stabilize the way rising—often unpredictably fast. we pay for schools.It's not just another run away financing Measure 1 will make our tax bills more predictable, and provide planl much-needed stability in the government services we need. School tax base growth is limited to 3%a year—half of what it is Programs the state provides,like our colleges and universities,will now.And there won't be election business as usual—excess levies be better served as well.And our very high state income taxes will be can be voted on only once a year.Elections on new tax bases also are cut by nearly 10%. limited to one a year.It makes sense,we will pay for only what we That's why Measure 1 makes sense.It helps stabilize the way we pay can afford! For our children that's better than school closings for government. It makes the whole system fairer. And it helps brought about by angry taxpayers or the ultimate blow to education business build new job opportunities. — a severe California-style property tax limit that would cripple Oregon's schools and economy. MEASURE 1 IS GOOD FOR BUSINESS Our school children deserve better! MEASURE 1 IS GOOD FOR ALL OREGONIANS A better economy for Oregon tomorrow depends on an educated BALANCE OREGON'S TAXES workforce. This tax plan gives our children the education they VOTE YES ON MEASURE 1 deserve at a price we can all afford!They don't deserve to be pitted against us—angry taxpayers.No one wins—not Oregon,not our Chris Lougee,Chairman children! Small Business Advisory Committee Please vote on Sept.17 for a balanced tax system for Oregon!One Economic Development Commission that reduces property taxes and cuts our dependence on it to finance Submitted by: Barbara Linhares schools! Vote Yes on Ballot Measure 1 People for a Better Oregon P.O.Box 25690 William Cramer,President Portland,Oregon 97225 Oregon School Board Association Bill Beck,President (This space purchased for$300 in accordance with ORS 251.255.) Confederation of Oregon School Administrators The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the Submitted by: Barbara Linhares People fora Better Oregon accuracy or truth of any statement made in the argument. P.O.Box 25690 Portland,Oregon 97225 (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. Official 1985 Special Ele ction Voters'Pamphlet 1 CONTINUED Measure No. I o EGO F ARGUMENT IN FAVOR ARGUMENT IN FAVOR OREGON'S OREGON'S TAX SYSTEM IS ANTIQUATED HOUSING INDUSTRY forest orest roducts SUPPORTS P industry is still Oregon's number one job BALANCED TAXES provider in Oregon — but it is an industry experiencing difficult times. The balanced tax system provided for by Ballot Measure#1 will be a Oregon's primary U.S. competition is the South. Among the great help to home owners and home buyers.For home owners, it advantages the Southern states have are balanced tax systems. will reduce the property tax burden of the typical family by several PROPERTY TAXES ARE TOO HIGH hundred dollars a year. The forest industry is very capital intensive.It takes a lot of land For renters seeking to buy their first home,it will make it easier for to provide the logs to supply a sawmill,plywood mill or paper plant. them to make their house payments.This reduced house payment And,it takes a lot of machinery and buildings to turn these logs into brought about by lower property taxes will make the dream of wood products.We pay property taxes on all of these items.Due to homeownership a reality for thousands of additional Oregon fami- our unbalanced tax system we pay much higher property taxes here lies• than we would in other forest producing states. Oregon's property For the elderly who now face a future of fixed income but ever tax is 8th highest in the nation. increasing property taxes, it will substantially reduce their cost of Balancing our tax system would be good for Oregon's forest staying in their own home. industry and it would be for Oregonians. For all Oregon families, it will help insure that their monthly INCOME TAXES ARE ALSO TOO HIGH housing costs will continue to remain affordable.Ballot Measure#1 Our economy is based on productivity.When taxes are too high is fair and broad-based without a total tax increase.Renters will be on anything,it tends to result in a lower amount being produced. given equivalent relief and family income taxes are cut. The key Income tax is nothing more than a tax on productivity.It doesn't elements will be placed in the Constitution so they can only be matter how hard you work, every penny gets taxed — and at an changed by a vote of the people. even higher rate!After awhile,it makes more sense to go fishing. Ballot Measure #1 will also bring long-needed stability to school EDUCATIONAL STABILITY IS IMPORTANT " finances. Oregon families who have been continually burdened by The days of brute strength and little intellect are long gone in the ever-increasing school levies.will no longer be threatened with forest industry of today.With today's complex equipment we need "school closure"if a levy isn't approved. workers who have had a good education.Our unbalanced tax system Ballot Measure #1 will bring a sensible approach to Oregon's threatens the provision of that good education in Oregon. People outmoded volatile and unfair tax structure. Reduced home- fear they'll lose their homes due to high property taxes so they vote ownership costs and stable school financing will bring a new "no" on school budgets. Sometimes the school doors close as a confidence to neighborhoods. Strong neighborhoods along with a result.The Legislature scrambles to provide property tax relief by predictable balanced tax system will provide an environment which raising income taxes.No one wins. encourages growth of existing companies and new businesses.This Oregon's Forest Industry Needs the Boost a Balanced Tax means more jobs for Oregonians. System Provides! Measure#1 is Good for Oregon JOIN US ON SEPT. 17 IN VOTING Let's Balance Oregon's Taxes YES ON BALLOT MEASURE#1 VOTE YES ON MEASURE#1 Strayer Pittman James R.Irvine Lee Robinson Fred Van Natter Bond Starker Oregon State Home Builders Association Submitted by: Barbara Linhares 545 Union Street People for a Better Oregon Salem,OR 97301 P.O.Box 25690 Submitted by: Barbara Linhares Portland,Oregon 97225 People for a Better Oregon (This space purchased for$300 in accordance with ORS 251.255.) P.O.Box 25690 Portland,Oregon 97225 The printing of this argument does not constitute an endorse- (This space purchased for$300 in accordance with ORS 251.255.) ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. 12 Official 1985 Special Election Voters'Pamphlet i CONTINUED Measure No. I STATE o F ARGUMENT IN OPPOSITION ARGUMENT IN OPPOSITION The Oregon State Grange has opposed the sales tax consistently THE SALES TAX GAME for over half a century,being one of the chief petitioners in referring WHO ARE THE WINNERS? ' the first Oregon sales tax proposal to the people in 1933-34. Grange opposition to the sales tax is based on the same consid- Owners of high value properties Non-resident owners of Oregon property erations that prevailed in 1933, reasons just as valid now as they were then because the essence of the proposal is the same as it was Out-of-state stockholders in Oregon businesses fifty years ago.Nothing has changed. Small families with high incomes The current proposal,like its predecessors is basically inequita- WHO ARE THE LOSERS? ble and basically unsound. Low and middle income families It taxes NEED—not ABILITY TO PAY! Families of three or more persons It's a new ADDED TAX — not tax equalization. It does not Elderly Oregonians that defer their property taxes eliminate either property or income taxes.It simply adds a new tax Border cities businesses with out-of-state customers to consumer purchases.It's a rapacious,octopus like scheme that its Families in low property tax areas of the state proponents want molded in concrete in the State Constitution. THE EXEMPTION ON FOOD OFFERED IN THIS CON- Individuals (homeowners and renters would pay nearly 64% of STITUTIONAL MISCHIEF IS A DELUSION.The U.S.Depart- the sales taxes collected each year and get only about 39% of the ment of Agriculture estimates that only a little over half the typical property tax relief,including low income refunds. "Food Basket"contains actual food items.The rest is made up of Businesses would pay only about 33%of the sales taxes collected basic home necessities,all of which would be subject to tax. and would get over 44%of the property tax relief. The sales tax,stripped of its pretensions,is a MASSIVE SHIFT Administration costs (300 to 400 new state employees) and of tax responsibility from those who benefit most in our society to collection costs(paying retailers 20 out of every sales tax dollar they the already over-burdened shoulders of those who benefit less. It collect)would eat up more than would be picked up from tourists. would relieve affluent corporations of millions of dollars in justifi- HERE ARE THE FIGURES TO SHOW THAT THE SALES able taxes and shift those taxes to low and middle income consum- TAX MEASURE WOULD PUT AN ADDITIONAL $106 MIL- ers. It is based not on ABILITY TO PAY,but on the NEED TO LION TAX BURDEN EACH YEAR ON OREGON HOME- CONSUME. OWNERS AND RENTERS! It is a distortion of the English language to call any sales tax a Homeowners and renters would pay nearly 64% "progressive tax".There is"no such animal". of the$926 million collected in retail sales taxes Distribution of the sales tax revenue has not been spelled out but each year for a total of ...........$591,000,000 is being left to the tender mercies of a future legislature. In other ''''''"''' words,no taxpayer is assured as to how much property tax relief he and would receive back in all forms of tax relief $485,000,000 or she will get,IF ANY.As one legislator phrases it:"Don't put your and refunds .................. faith in some"Trust Me"legislature". TOTAL INCREASED TAX BURDEN ON The potential for mischief is alarming.Slight property tax relief OREGON HOMEOWNERS AND RENTERS ....$106,000,000 might be afforded temporarily,but the machinery is there to bring (Source—Legislative Revenue Office,April 10,1985) levies right back to where they are now — or higher — within a The$106 million dollar shift is a transfer from the losers matter of a year or two.Oregonians will then be paying a sales tax IN (individuals)to the winners(businesses)in the SALES ADDITION TO THE PROPERTY AND INCOME TAXES TAX/PROPERTY TAX RELIEF GAME! THEY ARE NOW PAYING. THE SALES TAX package does not guarantee that property taxes IT IS AN ADDED TAX—NOT TAX REDUCTION. would stay down. Oregonians could end up with property tax bills The average consumer-taxpayer will pay substantially more over that are as high or higher than they are now—and be paying a 5% a twelve-month period in sales taxes than he will ever enjoy in SALES TAX TO BOOT! property tax relief.Statistics on family pay-outs in sales tax states bears this out.THE SALES TAX IS AN ADDED TAX— NOT Submitted by: George W.Starr,Treasurer TAX RELIEF! NO SALES TAX LEAGUE THE OREGON STATE GRANGE URGES YOU TO VOTE 1313 S.E.12 Avenue SEPTEMBER 17th and to vote a decisive"SALES TAX—NOV' Portland,OR 97214 Submitted by: Morton Wolverton,Master (This space purchased for$300 in accordance with ORS 251.255.) Oregon State Grange 1313 S.E.12th Avenue Portland,Oregon 97214 The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the (This space purchased for$300 in accordance with ORS 251.255.) accuracy or truth of any statement made in the argument. The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. Official 1985 Special Election Voters'Pamphlet 13 CONTINUED Measure No. 1 OREGO F ARGUMENT IN OPPOSITION ARGUMENT IN OPPOSITION THE SALES TAX:4 REASONS TO VOTE NO THE DEMOCRATIC PARTY OF OREGON OPPOSES ON SEPTEMBER 17 THE SALES TAX 1. On average, Oregon families will pay more taxes if the A Sales Tax Would Mean sales tax plan is passed.The sales tax plan will create a shift More Oregonians Would in the tax burden — off businesses and onto households. Pay More Taxes—Vote Homeowners and renters would pay out an estimated $591 NO on the Sales Tax million in sales taxes, but would receive only$485 million in THE SALES TAX IS UNFAIR—The sales tax shifts the burden combined property and income tax relief.The net result would of taxation from those more able to pay to those less able to pay.It be a$106 million increase in the tax burden on Oregon house- holds,an average increase of over$100 per household! means that everytime a mother buys a pair of shoes for her child,she is going to pay a tax. Meanwhile, this measure gives millions of 2. The sales tax is a regressive tax.It hits low-income families dollars in tax relief to Oregon's wealthiest individuals and largest hardest.Low-income families generally spend a greater percent- corporations. age of their income on taxable purchases. High-income people THE SALES TAX IS BAD FOR OUR SCHOOLS—This measure other non-taxable items. Wealthier people put some of their tend to spend larger portions their income on services and hurts the ability of our schools to raise revenue locally by limiting income into investments and savings;poorer people do not have the growth rate of school districts' tax bases and limiting the this option. Under the 1985 sales tax plan, the percentage of number of times school districts can go to their local voters to family income paid in sales taxes by low-income families would request money.On the other hand,even though money raised by the be more than twice as high (4.2%) as that of wealthy families sales tax is dedicated to property tax relief for school districts,there (1.7%)! is no constitutional guarantee of equitable distribution of sales tax 3. The sales tax plan would cut into school funding.Pro money.You and those in your school district could pay more in sales g• po- taxes to the state than you get back from the state in property tax nents of the sales tax argue that it is needed in order to stabilize relief. funding for education. This is a worthwhile goal,but the sales OREGON JOBS WILL BE LOST — Each state on Oregon's tax plan does not achieve it. In fact, the sales tax plan would borders has a sales tax. With a sales tax in impose a 3% limit on the annual growth of the tax base for Oregon out-of-state schools.Since the annual inflation rate is running at about 4%, shoppers coming here to buy goods from Oregon businesses will no this growth would actually erode the base of school funding longer have any reason to do so.Workers at these businesses will lose This is not the way to stabilize funding for education. their jobs adding to Oregon's already high unemployment rate. 4. There is a provision in the sales tax plan which allows the SMALL BUSINESS IN OREGON WILL BE HURT BY A Legislature to create further exemptions in 1987 without voter SALES TAX—Small businesses will lose competitively against big approval!This is a gaping loophole.If the sales tax passes,will corporations. They have less flexibility than big corporations in the 1987 Legislature be able to resist the pressure from big making adjustments to recoup lost income resulting from the sales money lobbyists to create special exemptions to benefit their tax.'moo,unlike big landholding corporations,many of which are special interests? owned and controlled by out-of-state interests,small businesses will get absolutely no tax relief from the sales tax because more often VOTE NO ON SEPTEMBER 171 than not they rent the land and buildings where their businesses are Submitted by: Janet M.Byrd located. Oregon Fair Share THE DEMOCRATIC PARTY OF OREGON IS OPPOSED TO 519 S.W.Third THE SALES TAX BECAUSE IT IS A BAD TAX:IT IS UNFAIR, Suite 409 IT IS BAD FOR OUR SCHOOLS, AND IT MEANS MORE Portland,Oregon 97204 OREGONIANS WILL PAY MORE TAXES. (This space petitioned by 1,000 electors in accordance with ORS VOTE NO SALES TAX SEPTEMBER 17. 251.255.) Submitted by: Gilbert B.Campbell,Chairperson No Sales Tax Committee The printing of this argument does not constitute an endorse- Democratic Party of Oregon ment by the State of Oregon, nor does the state warrant the 1465 State St.--- accuracy or truth of any statement made in the argument. Salem,OR 97301 (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. 14 Official 1985 Special Election Voters'Pamphlet CONTINUED Measure No. OREGONF ARGUMENT IN OPPOSITION ARGUMENT IN OPPOSITION Statement in Opposition to Oregon Sales Tax VOTE NO Vote NO on Oregon Sales Tax The sales tax proposal is a very leaky bucket in which to carry A Sales Tax is the most regressive, anti-working class, relief to put out the property tax fire. undemocratic form of taxation.A Sales Tax takes a bigger percent- It is just another tax,with high administrative costs to be added age of earned income bite from lower income families without regard to the existing costs of the other two tax systems, which will also for dependents,a lesser percentage charge against high incomes,and continue. State-collected general fund taxes will increase by about nothing from out of state owners of big corporations in Oregon. one-half. And it carries the unfairness of being a tax based on the "WHO WOULD BE THE BIGGEST WINNERS?? necessity to consume rather than the ability to pay principle. The out-of-state owners of the biggest corporations in Oregon.By Much of the new tax will be wasted before any net new tax relief directing Sales Tax revenue to straight reduction of property taxes, is provided. these biggest corporations would receive a windfall tax reduction, Several hundred new state employes will be added to audit farms thus increasing their profits,which would largely go to out of state and businesses and collect the new tax for a cost of at least $12 stockholders. million per year. "WHO WOULD BE THE BIGGEST LOSERS?? Retailers will keep$17 million per year.Refunds of another$19 Lower income working class people who would inevitably make up million each year will be paid out and not available for relief. the property tax savings and the increased profits for the rich. Governments will pay the new tax on some of their activities. For true property tax relief for those who need it the most,we Current tax relief of$170 a residence and$85 for renters per year, endorse the"Home Exemption and Renter Relief"plan. which has been financed without the sales tax, will have been For real" help for the Oregon economy we must curb the drastically reduced by separate action of the legislature.So another j approximately$2 billion a year net loss of revenue from Oregon to $50 million of residential property tax relief,or more,is lost as a part the Pentagon.That loss was$one thousand nine hundred million in of the overall legislative program of which the new sales tax is a part. 1983 alone(from SANE,a highly respected peace organization)that These costs and losses of existing relief,listed above,are nearly was not spent in Oregon for cars,homes,furniture,food,clothing, $100 million a year. T.V.s, or anything else. While this net loss is nearly triple the Of the remaining"relief"about 10%will go to absentee owners of projected net receipts from Sales Tax,the real loss to the Oregon Oregon real property who live in another state or nation.People who economy is much greater, through the loss of the "recirculatory live outside Oregon will reap nearly$100 million a year in property effect",that is,money spent in Oregon tends to get spent in Oregon tax relief where they have not sown. again,money taken out is gone.On the other hand,Sales tax money Thus, at least $200 million a year will never provide any new adds nothing to the economic base,and,as stated above,lets profits property tax relief for Oregonians. go out of state. An additional$114 million a year will go without any strings or Submitted by: Ed Hemmingson,District Organizer limits to pay increasing school costs.This will NOT,by definition in COMMUNIST PARTY,OREGON DISTRICT the constitutional amendment,be used to offset property taxes,nor PO Bx 8151 will it be subject to the 6%annual growth limitation. Portland,Oregon 97207 PO Bx 372 In short, over one-third of the new tax will not give any new Albany,Oregon 97321 property tax relief to Oregonians. PO Bx 1250 Income taxes are free to rise up even if this new tax is exacted. Springfield,Oregon 97479 Property taxes for Cities and Counties are not reduced by this measure nor are they in any way limited from rising up and up. (This space purchased for$300 in accordance with ORS 251.255.) The proposal will not stabilize school finances because the sales tax receipts are more sensitive to economic recessions than are the The printing of this argument does not constitute an endorse- existing sources of school finance. meat by the State of Oregon, nor does the state warrant the Submitted by: Edward N.Fadeley accuracy or truth of any statement made in the argument. State Senator,Dist.21 (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. Official 1985 Special Election Voters'Pamphlet 15 CONTINUED ITATE Measure No. I OREGON ARGUMENT IN OPPOSITION ARGUMENT IN OPPOSITION SURE YOUR TAXES ARE TOO HIGH. SALES TAX:"NO!"HOME EXEMPTION:"YES" Property taxes on homes have gone up and up over recent years. Now they are more than many people can afford. Dear Oregonians: BECAUSE YOU'RE PAYING SOMEBODY ELSES TAXES! Many Oregonians are worried.They've been told that unless the Taxes are higher on homes because large corporations don't pay sales tax passes, Oregon schools will shut down and we'll lose our their share. Many oil companies and utilities pay little or no parks,fire departments,and police protection. corporate tax while your income tax goes up.Similarly,big business Don't be fooled! Oregon doesn't need this sales tax. Some keeps its share of the property tax bill down while your share goes property taxes may go down temporarily,but you'll wind up paying UP. MORE in the long run. There's a better way to reduce property GOVERNMENT SPENDING IS NOT TO BLAME taxes. Services from government have been cut.Funding for schools is THE HOME EXEMPTION ALTERNATIVE in trouble.But public spending has only gone up at about the same In April a group of legislators and citizens launched the initiative rate as inflation. petition campaign for the HOME EXEMPTION. The Home IT'S THE TAX SHIFT THAT COSTS YOU MONEY Exemption is the responsibile alternative to the sales tax and the Big business spends big money to lobby the Oregon Legislature. 1 1/2% limitation,which will mostly benefit big business and large Over the years much of their property (business inventories and commercial operations. standing timber for example) has been exempted from property The Home Exemption is simple.Homeowners will get a$25,000 taxes.When they pay less,you pay more.That's the tax shift. exemption on the value of their homes,or 50%, whichever is less. THE SALES TAX WOULD MAKE IT WORSE Renters will get equivalent relief. In Oregon, the average home is Most of the sales tax money would come from individual tax- valued at approximately$58,000.For an average homeowner whose payers. Most of the property tax relief would go to large corpora assessment is$25 per$1,000,the annual tax bill is over$1,400.The tions,apartment building owners,and land speculators. Home Exemption will reduce that bill to about $800, FOR A SAVINGS OF ABOUT$600 PER YEAR! DON'T GIVE IN TO THE TAX LIMITATION THREAT The Home Exemption will provide property tax relief for those Tax limitation measures(1 1/2%etc.)have always been supported who really need it—homeowners and renters.Unlike the sales tax, by many large corporations and out-of-state owners of Oregon it won't stick the people with an additional $926 million in new property that will save the most money. They don't care if our taxes just to deliver a paltry$361 million in homeowner and renter schools and parks close.Now they want to scare you into voting for a property tax relief. sales tax as the only way to protect schools. OREGON NEEDS THE HOME EXEMPTION! THE HOME EXEMPTION IS THE ANSWER VOTE NO ON THE SALES TAX! The real alternative is tax relief that targets average homeowners and renters.This is the only way to restore fairness to the tax system Sincerely, and protect vital government services. When you vote yes for the State Senator Margie Hendrikaen State Senator Jan Wyera home exemption next year, you will save more on your property State Senator Bill McCoy State Senator Mae Yih taxes—without a sales tax. State Rep.Dave McTeague State Senator Walt Brown BEWARE THE BIG BUSINESS CAMPAIGN State Rep.Dick Springer State Senator Edward Fadeley The wealthy corporations, hiding behind respectable govern- State Rep.Larry Hill ment leaders,can spend millions of dollars to sell you the sales tax. To help pass petitions for the Home Exemption contact: They will save much more than that in the first year.If you buy the ON COMMITTEE THE OREGON HOME EXEMPTI sales tax,you'll keep paying more than your share. 610 SW Alder TI Submitted by: Rhys Scholes,Director Portland,Oregon 97205 CITIZENS FOR FAIR TAXES Judy Wyers,Treasurer P.O.Box 45 Phone:223-8760 Portland,Oregon 97207 a project of the Portland Local of Submitted by: Mike Bonner Democratic Socialists of America The Oregon Home Exemption Committee (This space purchased for$300 in accordance with DRS 251.255.) (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. accuracy or truth of any statement made in the argument. 16 Official 1985 Special Election Voters'Pamphlet Measure No. i OREGONF ARGUMENT IN OPPOSITION ARGUMENT IN OPPOSITION Oregonians Sales Tax Losers 106 MILLION REASONS TO VOTE"NO" The sales tax would shift taxes from businesses onto most ON THE 5%RETAIL SALES TAX workers, retirees, small farmers, unemployed, small businesses, The proposed 5% retail sales tax will greatly increase the total students and renters. tax burden on Oregonians. Sales Tax Balance Sheet: Increased Taxes on This sales tax scheme will require that Oregon homeowners and Individuals and Householdst renters pay out $106 million more each year than they'll receive back in property and income tax relief. —In Millions of Dollars— Measure #1 will make Oregonians tax losers,not tax winners. How Losers Lose: Individuals Businesses Tourists Here are the facts and figures you won't find in the expensive TV •Taxes Shifted from Businesses.......... $ 86.6 —$113.6 $ 27.0 and radio ads purchased by the sales tax winners. •Special Timber Tax Reduction............. 2.6 — 2.6 .0 . The Legislative Revenue Office at the State Capitol reports •Payment Towards Retailers Costs......... 11.8 6.1 .6 •Cost of 300-400 New Revenue Employees... 7.6 CO .4 that Oregon homeowners and renters will pay 64% of the total •Yearly Tax Change if Sales Tax Passes. +$108.6 7$106.1 +$ 28.0 $926 million collected in the first year of the proposed sales tax. That equals$591 million in new taxes. t Data provided by the Legislative Revenue Office, Capitol . However,Oregon homeowners and renters will receive back Building only 54.2% of the $895.5 million left over after deducting collection costs of$30.5 million.That equals only$485 million in Payment of the sales tax would mean a reduction of not more new tax relief. than 23%,on the average,not 32%or 35%from our present property • The net increased tax burden on Oregonians in the first year taxes. Why? Legislators have made it very clear: If the sales tax — $591 million less$485 million — is$106 million,and that's passes the $170 property tax reduction homeowners now receive 106 million reasons for voting"NO". ($85 for renters)would be eliminated.We say,"The$25,000 Home Who will benefit from the extra$106 million that Oregonians will Exemption measure is the answer to property tax relief for home- shell out the first year?Here are just a few of the sales tax winners: owners and renters." • Foreign corporations and investors own over 418,000 acres of Russ Farrell Lynn Ziegelmeyer Oregon agricultural land.They'll get a 35% cut in their Oregon 3144 N.E.43rd Avenue P.O.Box 1112 property taxes but will pay no Oregon sales taxes overseas. Portland,Oregon 97213 Medford,Oregon 97501 • California speculators own mobile home parks and rental properties in Oregon.They'll also get a 35%cut in their Oregon Mark Becker Duane Poncy property taxes.But do you think they'll lower the rents charged 60150 Stirling Drive P.O.Box 325 to their Oregon tenants? Bend,Oregon 97702 Salem,Oregon 97308 • Out-of-state corporations own The Oregonian,Portland Gen- Robert L.Rounsley Tony Whitney eral Electric,the Bank of Oregon and other companies.They will 476 E.Broadway 16020 Alpine Drive pay little in sales taxes but will get a 35% reduction in their Eugene,Oregon 97401 La Pine,Oregon 97739 Oregon property taxes. Margaret Wilson Wally Priestley Oregon small businesses will pay far more in sales taxes than they'll 223 Conestoga Way 2207 N.E.Ainsworth St. get back in property tax relief.The organization speaking for small Eugene,Oregon 97401 Portland,Oregon 97211 business(National Federation of Independent Business) estimates Phil Mitchell that collecting the tax will cost 6.4¢ per dollar, but they will be reimbursed only 20 per dollar. Yet small businesses generate over 333 S.E.45th Avenue 75%of all new jobs in Oregon. Portland,Oregon 97215 With the third highest unemployment rate in the nation, Oregon Vote"No"Tuesday,September 17' 1985 can't afford to be unfair to our middle and lower income families. Don't make times harder by increasing the tax burden of Oregonians Submitted by: Wally Priestley next year by an extra$106 million in additional taxes. CONSUMERS OPPOSING THE Submitted by: STATE SENATOR WALT BROWN SALES TAX(C.O.S. 3710 S.E.Concord Road#95 Portland,Oregon 97213 N.E.43rd Avenuue e Milwaukie,Oregon 97222 Port Chairman: Senate Agriculture&Forestry Committee (This space purchased for$300 in accordance with ORS 251.255.) Member: Senate Utility Rate Relief Committee Governor's Commission on Senior Services The printing of'this argument does not constitute an endorse- Oregon Democratic Party,Executive Committee ment by the State of Oregon, nor does the state warrant the Oregon Consumer League accuracy or truth of any statement made in the argument. National Federation of Independent Business (organization affiliations listed for identification only) (This space purchased for$300 in accordance with ORS 251.255.) The printing of this argument does not constitute an endorse- ment by the State of Oregon, nor does the state warrant the accuracy or truth of any statement made in the argument. Offidal 1986 Special Electlon Voters'Pamphlet 17 i I I I i i i i j 18 Official 1985 Special Election Voters'Pamphlet ABSENT VOTER IN-STATE ABSENT VOTER You may apply for an absentee ballot with your county The U.S. Department of Defense provides Standard Form 76 clerk if: that complies with these requirements.It is recommended that long 1. You are a registered voter,and term absent voters use this form—available at embassies and 2. You have reason to believe you will be unable,for any reason,to military installations—whenever possible. vote at the polling place on election day. Your long term absentee ballot application will be valid for all elections held in the calendar year for which it is received. Your application must be in writing and must include: Special absentee voting instructions and a ballot return envelope 1. Your signature.(This is imperative,for comparison purposes.) will accompany each absentee ballot. 2. A statement as to why you will be unable to vote in person. REMEMBER, YOUR ABSENTEE BALLOT MUST BE 3. Your residence dress. e 4. The address a which the ballot should be mailed, if different RECEIVED BY YOUR COUNTY CLERK NO LATER THAN 8 P.M.THE DAY OF THE ELECTION. from your residence. YOUR APPLICATION MUST BE RECEIVED BY YOUR ------------------- COUNTY CLERK NOT LATER THAN 8 P.M. THE DAY OF THE ELECTION. If an elector is physically handicapped,the application is valid ABSENTEE BALLOT APPLICATION i for every election held during the calendar year for which the application is received. The first day county clerks could accept an absentee ballot I PRECINCT NAME/NUMBER application for the September 17th special election was July 19, 1985. Absentee ballots are delivered as soon as signatures are verified and the ballots are printed.Your ballot may be returned to the office of your county clerk by any appropriate means, but, if TODAY'S DATE ELECTION DATE application is made by mail,be sure to allow enough time to receive I 1 the ballot and return it to your county clerk by 8 p.m.on the day of the election. i PRINT YOUR NAME CLEARLY f I RESIDENCE STREET ADDRESS LONG TERM ABSENT VOTER CITY I COUNTY I ZIP You may apply for long term absent voter status with your county clerk or the Secretary of State if: REASON FOR REQUEST: � 1. You are a resident of this state absent from your place of residence,and 2. You are serving in the Armed Forces or Merchant Marine of the United States,or 3. You are temporarily living outside the territorial limits of the i SIGNATURE OF APPLICANT(HANDWRITTEN) U.S.and the District of Columbia,or 4. You are a spouse or dependent of a long term absent voter. A IF YOU ARE IN THE HANDICAPPED OR SPECIAL VISUAL spouse or dependent of a long term absent voter,not previously a CATEGORY,CHECK HERE FOR FULL YEAR VALIDITY. resident of this state who intends to reside in this state, is ( ADDRESS TO WHICH ABSENTEE BALLOT SHOULD BE SENT IF considered a resident for voting purposes and may vote in the i DIFFERENT FROM RESIDENCE ADDRESS: same manner as a long term absent voter. Your application must be in writing and must include: 1. Your name and current mailing address. STREET ADDRESS 2. A statement that you are a citizen of the U.S. I 3. A statement that you will be 18 or older on the day of the election. 4. A statement that your home residence has been in this state for CITY more than 20 days preceding the election,and giving the address of your last home residence. 5. A statement of the facts that qualify you as a long term absent i STATE ZIP voter. 6. A statement that you are not requesting a ballot from any other MAIL THIS APPLICATION TO THE COUNTY CLERK OF THE state and are not voting in any other manner than by absentee COUNTY IN WHICH YOU MAINTAIN YOUR HOME RESIDENCE ballot. 7. A designation of your political affiliation if you wish to vote in a primary election. --------------------- 19 Official 1985 Special Election Voters'Pamphlet VOTERSY PAMPHLET AA It OF O This Voters'Pamphlet is the personal property of 18 5 9 the recipient elector household for assistance at the polls. BULK RATE Barbara Roberts U.S.Postage Secretary of State PAID State Capitol State of Oregon Salem, Oregon 97310 RESIDENTIAL CUSTOMER, LOCAL Please RECYCLE this pamphlet with your newspapers