The Oregon People’s Rebate is designed to be efficient and it has a very low administrative footprint for both corporations and the State of Oregon.
The Oregon People’s Rebate proposes a change in the minimum corporate rate, not a new tax. This means that corporations with more than $25 million of Oregon revenue will pay their taxes the same as they do now, but with the higher minimum tax (from today’s less than 1/8 of 1% to 3%). If any of these corporations happen to be paying 3% or more in state taxes today, they will see no difference.
For the State of Oregon, administering the Oregon People’s Rebate is also designed to be as easy and straightforward as possible. The Department of Revenue will collect the new revenue just like it currently does, and because the rebate is not means-tested there is minimal administrative overhead. We expect that most Oregonians will request their rebate through their state tax filings, which should be easiest for both Oregonians and the State. Oregonians who request their rebate not with their taxes will just have to complete a simple form to receive their rebate. In either case, the State’s administrative burden is limited to cross-reference the eligibility of the and issuing the rebate through an electronic payment or paper check.
Of course, per Section 3 (1), lines 39-43 of page 2, the administrative costs of administering the Oregon People’s Rebate are accounted and paid for.