Oregon Introduces Legislation to Impose Sales Tax.

On January 25, 2005 the Oregon Senate introduced Senate Bill 382 under which Oregon retailers would be required to collect and remit sales tax on all sales of tangible personal property. If enacted, S.B. 382 would grant the Department authority to enter into the Streamlined Sales and Use Tax Agreement. The department would also be directed to implement destination-based sourcing rules, as is required by the Agreement. Under this legislation, the new provisions related to sales and use tax would apply to transactions on or after January 1, 2006, provided the Streamlined Sales and Use Tax Agreement has become operative prior to this date.

S.B. 382 also provides for a reduction to personal income tax rates, increases state earned income tax credit, and makes these credits refundable. The bill creates property tax exemptions for senior citizens or persons with a household income below the defined threshold. (S.B. 382, introduced as noted above)

Posted on March 3, 2005