Understanding Measure 118 and Its Impact

This article brought to you courtesy of Claudia Yakos, Executive Director of the Forest Grove/Cornelius Chamber of Commerce News-Times Insider. Sponsored content.

Dear Business Community and Residents,

We want to bring an important issue to your attention: Measure 118, a proposed sales tax, will be on the November ballot. This measure could have significant implications for our local economy, businesses, and community.

Measure 118, previously known as Initiative Petition 17, was officially assigned its ballot number on August 1. The Oregon Business & Industry (OBI) coalition, which is working to defeat this measure, has highlighted several concerns that we believe you should be aware of.

One of the critical points raised by OBI is the potential impact on the state’s General Fund. According to the Legislative Revenue Office, Measure 118 could result in a net loss of $1.2 billion to the General Fund during the 2025-27 biennium and $2.8 billion during the 2027-29 biennium. This could lead to reduced funding for essential state services, which many of our community members rely on.

The implications for businesses are equally concerning. The measure would likely increase the cost of doing business in our state, potentially leading to higher prices for consumers. Small businesses, which form the backbone of our local economy, could be hit particularly hard. Increased operational costs could force some to reduce staff, cut back on services, or even close their doors.

Additionally, the administrative costs of implementing Measure 118 are substantial. The Department of Revenue estimates that it would need to hire 199 new positions to manage the measure and prevent fraud. These administrative challenges would not only add to the financial burden on the state but also create a more complicated regulatory environment for businesses.

Governor Kotek has expressed opposition to the measure, highlighting the potential harm it could cause to our state's economic health.

We encourage you to learn more about Measure 118 and consider its potential impact on our community. For more detailed information and to find out how you can join the coalition opposing the measure, please visit the OBI website here.

It's crucial that we stay informed and engaged on issues that affect our local economy and quality of life. Your awareness and participation can make a significant difference.