FOR IMMEDIATE RELEASE                                                                                  Rebecca Tweed 503-860-6033


Proposed Gross Receipts Tax Will Cost Portlanders $166 Per Year

Households earning less than $40,000 would pay higher proportion of income toward new tax

Portland, Ore. (October 15, 2018) – A new economic study finds that a measure creating a new gross receipts tax within the City of Portland will further stretch the budgets of many Portland families. Released today, the study concludes that Measure 26-201 will cost Portland households an average of $166 in the form of higher costs for goods and services.

“Portland is becoming unaffordable for a lot of families, and Measure 26-201 will only make it worse,” said Andrew Hoan, President and CEO of the Portland Business Alliance. “It is a sales tax that will be passed on to Portland families and small businesses in the form of higher costs on items like clothing, school supplies, internet access and many other daily needs.”

The study also found that households earning less than $40,000 a year will see a significantly higher proportion of their income go toward paying the tax. “It is a regressive tax that will ultimately be shouldered by the people who can least afford to pay for it,” Hoan said.

The study was authored by Dr. Eric Fruits, chief economist at Portland-based consulting firm Economics International and an adjunct professor of economics at Portland State University.

“The measure’s gross receipts tax—like nearly all gross receipts taxes—is an unavoidably regressive tax that burdens lower income households more than higher income households,” the study concluded. “The tax burden for lowest income residents would amount to approximately one percent of household income, or more than five times the burden faced by the highest income households.”

Last week, a report by Portland economic consulting firm ECONorthwest revealed that the measure will cost consumers as much as $79 million per year – more than twice the “$30 million in new annual revenue” claimed by proponents.

The researcher used Consumer Expenditure Survey and U.S. Census Bureau data to arrive at the conclusions. The numbers also assume a portion of the tax will be borne by consumers from outside Portland who shop in the city.

About Keep Portland Affordable

Keep Portland Affordable is a coalition of businesses and consumers concerned about the impact Measure 26-201 will have on the increased costs to those living and doing business within Portland.