Chapter § 14.1

• Jurisdiction: Oregon

§ 14.1 SCOPE

This chapter will attempt to summarize the various provisions of the Oregon Constitution limiting taxation. Issues relating to federal taxation or to the constitutionality of Oregon taxes under the federal constitution are beyond the scope of this chapter. At the outset, it is important to keep in mind that the Oregon Constitution is a limitation of power, not a grant of power. The people of Oregon and their legislative assembly may enact any law—in this context, any law related to taxation—that is not in conflict with the limitations imposed by the Oregon Constitution. State v. Cochran, 55 Or 157, 179, 105 P 884 (1909).

The Oregon Constitution contains numerous provisions relating to taxation. The only types of tax that are expressly prohibited are any poll tax or head tax and any tax on the transfer of real estate. Or Const, Art IX, § 1a; Or Const, Art IX, § 15. See § 14.2-3(a) (no poll or head tax), § 14.2-3(h) (no real estate transfer tax). Otherwise, except for limitations on the rates of oil and gas taxes (see § 14.4-1 to § 14.4-2), on the property tax rate (see § 14.5-1 to § 14.5-9), and on the percent of true cash value of all the taxable property in the state that can be taxed for specified benefit programs under Article XI-A through Article XI-Q, the Oregon Constitution does not limit the types or amounts of taxes that the legislature may impose.

In particular, the constitution does not prohibit a sales tax. The legislature has chosen not to impose one, and the people have rejected numerous ballot measures to enact one. Although some measures either referred by the legislature or initiated by the people would have enacted constitutional provisions authorizing and limiting a sales tax, if they had been approved by the voters, the legislature and the people nevertheless have the power, under the existing constitution, to enact a sales tax.

A number of constitutional limitations and requirements apply to all forms of taxation. These are discussed in § 14.2-1 to § 14.2-3(h). The kicker provision is explained in § 14.3. The limitations on the amounts...