Income tax changes as of 6.2.2009 - Today’s changes to corporate and personal taxes
Corporate Taxation: HB 3405, -6 amendments
Elements: establishes new filing fees for all business types, new corporate minimum tax, and new higher tax rate
New secretary of state filing fees for all corporations (except non-profits)
Oregon Corporations $100
Corporations based outside of Oregon $275 $ 26 m
New s-corp & partnership minimum
Raises $10 minimum for s-corps to $150, adds a minimum for all business types
These businesses pay taxes on their business profits via their personal taxes, so they pay at the 5-7-9% and the proposed 10.8 and 11% rates
New $150 minimum for s-corps & partnerships $ 34 m
New c-corp minimum,
Corps will pay the higher of this tax or the corporate income tax
Based on gross Oregon sales – ten steps, ranging from $150 to $100,000 $ 93 m
C-corp Tax rate increase
Currently 6.6% on all income
7.9% for 2009-11 for income above $250k (temporary) $108 m
7.6% for 2011-12 for income above $250k (temporary)
7.6% for 2013 and beyond for income above $10 m (permanent)
Total 2009-11 Revenue Impact = $261 m
Personal Taxation: HB 2649-3 amendments
Phase out of the $5500 deduction for federal taxes paid
between $250-300k joint filers/$125-150k single filers
Establishes new higher rates for 2009-2011
10.8% for taxable income > $250k (Joint), $125k (Single)
11.0% for taxable income > $500k (Joint), $250k (Single)
Rates for 2012 and beyond
9.9% for taxable income >$250 (Joint), $125k (Single)
New Revenue from Personal Income Tax Changes 2009-11 2011-13 2013-15
Increases from above changes $504 $375 $379
Exclude first $2400 of Unemployment Benefits for 09 -32 - -
Net from Personal Income Tax Changes = $472 $375 $379
TOTAL FROM TAX INCREASES $261 million + $472 million = $733 million
+ additional expected changes = $772 million