Beyond California: States to Watch (Oregon)

Beyond California: States to Watch.

Oregon: The downturn has severely affected some of Oregon’s leading industries, such as timber and computer-chip manufacturing, and exposed the state’s reliance on volatile corporate and personal income taxes—the result of voters rejecting a statewide sales tax nine times. State revenues plummeted 19 percent between the first quarter of 2008 and the first quarter of 2009, a reflection of Oregon’s heavy reliance on income taxes. Lawmakers this year approved more than $1 billion in new taxes to make sure the state can pay its bills. But voters in January 2010 will have the final say on $733 million in new income taxes that are part of that package, and the electorate historically rejects tax hikes at the polls. Download the report on Oregon.