Passage of bills beneficial to taxpayers, defeat of tax increase proposals highlight accomplishments for small businesses
NFIB was able to help pull out some victories for small businesses while defeating harmful proposals during the 2023 and 2024 sessions of the Oregon State Legislature
From 2024
Won Taxpayer Privacy Protections
HB 4031 clarifies that disclosure of taxpayer information, including specific taxpayer names, specific taxpayer amounts, and individual tax(payer) returns, is prohibited at the state and local level in Oregon.
Secured Reconnection to the Federal Tax Code
HB 4034 updates the date for which Oregon’s state tax code is connected to the federal tax code. No major federal legislation passed in 2023, or thus far in 2024, so HB 4034 was considered “plain vanilla” reconnect bill. The closer Oregon’s tax code is to the federal code, the simpler it is for taxpayers to comply with state and federal tax laws – and the less likely an inconsistency could trigger a tax audit.
Obtained Farm Equipment Tax Exemption
HB 4111 removes the distinction between tangible personal property and real property, making all equipment exempt that fits the statute’s definition of farm equipment. HB 4111 reduces confusion and administrative work for both farmers and county tax assessors while ensuring that the resulting change to statute does not constitute a major expansion of the exemption or large financial impact to county budgets.
Defeated Contractor Wage Claim Liability
SB 1573 would have made general construction contractors liable for the unpaid wages of their subcontractors. This would have been a dangerous precedent to set, regardless of the specific industry being targeted because it would have fundamentally held the wrong party responsible for breaking the law.
Stopped Professional Employer Organization Restrictions
HB 4005 would have made changes to Oregon’s employment laws in ways that would have impacted a relatively small number of businesses called Professional Employer Organizations (PEOs), but with a huge ripple effect for the small businesses they serve. PEOs are “administrative employers” that partner with small businesses to provide payroll, human resources, and employee benefits services.
From 2023
Won Estate Tax Relief for Natural Resources Sector Businesses
SB 498 sets a new $15 million estate tax exemption threshold for small businesses in the farm, forestry, and fishing industries, which is especially important for estates comprised mainly of illiquid assets, like farmland, ranchland, forestland, or a fishing vessel. NFIB has hundreds of Oregon members engaged in agriculture and the natural resources sector – and this bill is a great first step in addressing an inevitable problem for multigenerational family businesses.
Secured SALT Workaround Extension
HB 2083 extends a voluntary Oregon income tax program that allows qualifying business owners to reduce their federal income tax liability. Along with most states that have an income tax, Oregon responded in 2021 with the creation of a SALT cap workaround. At the time, Oregon opted for a two-year sunset of the program. It should be noted that HB 2083 does not create a new tax, nor does it create a new credit – it simply extends an existing tax program that helps Oregon businesses reduce their federal tax liability through 2025, when the federal cap on the SALT deduction is set to automatically expire.
Defeated Petroleum Diesel Fuel Ban
SB 803 would have phased-out and eventually banned the sale of petroleum diesel fuel in Oregon. The economy relies on the use and availability of diesel fuel, and although Renewable Diesel (RD) is an emerging alternative fuel that by most accounts is a good product that many Oregonians and business would like more of, RD currently (and likely into the future) faces significant cost competitiveness and supply challenges that have not yet been addressed. Our opposition was not a reflection on RD, but rather an ill-advised mandate that would ban a vast majority of diesel and put our members’ businesses and Oregon’s economic future at risk. The bill was then moved to the Joint Committee on Ways and Means, where it did not receive any further consideration.
Stopped Wage & Benefits Disclosure Mandate
SB 925 would have required all Oregon businesses to publicize ranges of compensation and descriptions of employment benefits for job postings, promotion opportunities, and transfer advertisements. This legislation would have impacted thousands of small and independent businesses across Oregon by creating an unnecessary, potentially costly, and burdensome state mandate when there are already significant federal and state standards that explicitly prohibit wage discrimination.
Beat Back Age Discrimination Mandate
HB 2800 would have prohibited employers from asking about the age of job applicants prior to completing an initial interview or making a conditional offer of employment. It would have also prohibited employers from using certain words or phrases in the job application process that could suggest age preferences. The bill would have created a new private right of action in addition to BOLI enforcement.
Stopped Private Right of Action Against Insurance
HB 3242 would have established a new private right of action for insurance policyholders against their insurer for unfair claim settlement practices including practices that are not described in current law but that are deemed unfair by the Director of the Department of Consumer and Business Services (DCBS) or a court. If the insured prevailed, they would be entitled to up to three times actual damages as well as attorney fees.This bill would have increased insurance rates for nearly all lines of insurance at a time when Oregonians and their businesses cannot afford any more cost burdens. Small businesses rely on affordable insurance rates to protect their businesses, their employees, and the customers they serve. HB 3242 would have moved Oregon’s insurance market away from a proven model that is working for most Oregonians to one that incentivizes expensive litigation.
Blocked Insurance Lawsuits Under Oregon’s UTPA
HB 3243 would have made insurance subject to Oregon’s Unlawful Trade Practices Act (UTPA), allowing private lawsuits against insurers and awards of both actual and punitive damages, in addition to attorney fees. The bill would have led to higher litigation costs to resolve claims, which creates market pressure to increase premiums. For many Oregon consumers and businesses, this would mean policyholders paying more for the same coverage – and if they could not afford to pay more, they would risk leaving themselves under-insured.
Beat Back a Minimum Wage & 32-hour Work Week Proposal
HB 3498 would have reestablished a statewide minimum wage in Oregon, doing away with the current three-region approach that was adopted in 2016, by setting the new minimum wage at $15 per hour starting on July 1, 2024 and raising the minimum by $1 per year until 2030. Similar to current law, the rate would then increase annually based on increases to the Consumer Price Index (CPI). The bill would also redefine full-time work, requiring overtime pay for hours worked in excess 32 hours per week.
