2017 SJR 7: Proposal to amend Articles IX and XI

Introduced into the Senate by Senator Riley in a pre-session filing, Senate Joint Resolution No. 7 which proposes to amend the Oregon State Constitution.  The proposal amends 2 different Articles: IX and XI.  In Article IX, there is the addition of Section 16.  In Article XI, there is the addition of Section 11m and 11n.

The effects of the changes

The main idea behind this amendment is to change the nature of taxation in Oregon to add a Sales tax and based on the additional revenue created by that, reduce property taxes on owner occupied houses to zero.  The sales tax would be exempt on transfer of real property, sale of water, food, clothing drugs, medical and mobility equipment and utilities.
This reduces the tax burden on home owners and increases it on those who rent.  As such it taxes the poor more heavily based on the idea that those who can afford it, buy and those who are too poor to buy, rent.  A potential side effect would be to temporarily raise demand for purchase of housing.

My view

This is an ill-considered piece of legislation and imposes a significant burden on the least wealthy Oregonians.  I also really do not like paying sales tax even though there is a good chance I would be ahead if this was passed.  I would not vote for this proposal, but it does not seem to be moving very far in this session, so I suspect it will die in committee.