The Oregon Legislature approved a bill Monday giving some small businesses a new tax break, completing its special session in a single day.
The bill’s passage is a big win for Oregon Gov. Kate Brown, who called the session last month after signing legislation to disconnect Oregon from a part of President Donald Trump’s federal tax overhaul benefiting small businesses.
Brown, a Democrat, said the emergency session was necessary to ensure fairness.
Her proposal, House Bill 4301 extends a small-business tax break, approved in 2013, to sole proprietorships.
State analysts project the reduced tax rates will apply to about 12,000 businesses, but only about 6,000 will take advantage of it. It’s projected to cost the state $11.3 million for 2018, then increase by about 5 percent per year.
Republicans called Brown’s move an election-year stunt, saying the legislation didn’t warrant an emergency special session.
“Rather than play political theater, let’s pass legislation that truly provides tax relief for Oregon’s small business,” Sen. Brian Boquist, R-Salem, said in a statement.
Boquist had introduced two amendments that were voted down.
Brown told reporters the session had nothing to do with the upcoming November general election.
“This is about tax fairness for our small businesses,” she said in a meeting with reporters following the bill’s passage.
She acknowledged some legislators’ concerns that the bill doesn’t go far enough to reform the state’s tax system.
“I fully anticipate you will see continuing conversations in this building about how we provide a tax structure that supports the growth of small businesses,” she said. “We will be looking at Oregon’s revenue system next session.”
The Portland Chapter of the Democratic Socialists of America held a noon-hour rally Monday protesting the proposal, saying the special session should have been used for more important issues, such as the state’s housing crisis.
Brown said no one had brought her a proposal having to do with housing.
The House passed the tax bill 51 to 8, while the Senate passed it 18 to 12.
Lawmakers also are attending informational committee hearings this week as part of Legislative Days, held several times a year to prepare for the 2019 regular session.