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State business advocacy groups are preparing to launch a campaign against the proposed measure, arguing that it would harm Oregon’s business landscape and economy.

The proposal, , would establish a 3% tax on corporations’ sales in Oregon above $25 million and distribute that money equally among Oregonians of all ages. As of Friday, its backers had turned in more than 135,000 signatures, which is higher than the 117,173 required to land on the ballot. The validity of those signatures must still be certified by the Secretary of State’s Office.

“It’s looking really good. It’s really exciting,� said Anna Martinez, a Portland hairstylist who helped form the group behind the campaign, Oregon People’s Rebate, in 2020. If approved by voters, the program would go into effect in January 2025.

Martinez and other supporters say the financial boost would help Oregon families buy groceries, afford rent and pay for basic necessities. “This will put money back in the local economy. It will help small businesses,� she said. “Some people say, ‘Well it’s only $750.’ But that’s huge if you really need it.�

The state Department of Revenue would be responsible for distributing the money. Every Oregon resident would be able to claim the money either in cash or as a refundable tax credit, regardless of whether they have filed personal incomes taxes, according to the ballot initiative draft.

The initiative proposal draft states that any leftover funding from the rebate would “be used to provide additional funding for services for senior citizens, health care, public early childhood education and public kindergarten through grade 12 education.�

The ballot measure campaign has received significant financial support from out-of-state supporters of universal basic income.

Oregon People’s Rebate has received about $740,000 in contributions and spent all but about $10,000. The highest contributor by far is Jones Holding LLC, a corporation based in Los Angeles and controlled by investor and universal basic income fan Josh Jones that has given $425,000. The second largest contributor is a related L.A.-based corporation, Jones Parking Inc., which contributed nearly $95,000. The third largest source of contributions are the foundation and mother of Gerald Huff, a software engineer and advocate of universal basic income from California who died in 2018. Huff’s foundation and mother have contributed $90,000 combined.

“Yes, the funders are from California, but these are not like nefarious outside interests here,� Martinez said. “These are people who are committed to basic income.�

Oregon business groups are preparing to fight the measure. State business lobby Oregon Business and Industry and tax policy research nonprofit Tax Foundation say raising corporate taxes would harm companies and lead to higher costs of goods and services.

“(The proposed measure) would impose a massive tax increase in Oregon,� Oregon Business and Industry said in a statement. “If it qualifies for the ballot, our organization will be involved in a campaign against it, and we are confident that when voters look at the facts, they will vote to reject it.�

Oregon currently brings in billions of dollars of corporate taxes every year. The state’s excise and income tax on corporations brought in 10.3% of the state’s general fund in the 2021-2023 biennium, enough to make it the second highest revenue source after personal income tax, according to the Legislative Revenue Office.

C corporations, the default type of corporation for tax status, that do business in Oregon currently pay a state excise tax of 6.6% on income under $1 million and a 7.6% tax on income above that. If a corporation doesn’t earn a net income, it must pay a minimum state tax of $150 to $100,000 based on total sales, according to the Legislative Revenue Office. Other types of corporations pay a minimum $150 excise tax.

Oregon corporations also pay a 0.57% corporate activity tax, which is calculated from companies’ commercial activity in the state valued above $1 million.

The proposed ballot measure would increase the minimum excise tax to 3% on all corporations’ reported gross sales above $25 million. Under the proposed measure, all of that money would then be distributed by the state Department of Revenue to all Oregon residents who live in the state for more than 200 days of the year.

Business groups fear that the increased taxes would drive corporations away from Oregon.

“In practice, affected businesses would likely move more of their operations out-of-state to avoid� paying such high taxes, according to a report from the Tax Foundation.

The report states that corporations with high gross sales but low or no profit would be taxed unreasonably high amounts. A corporation with a low 3% profit margin would have to pay all its profits from sales above $25 million in Oregon taxes.

Martinez said the opposition from business groups does not surprise her.

“It’s a tale as old as time,� she said. “Corporations don’t want to pay their fair share. They pay so little compared to everyday Oregonians. We all have really thin margins and we manage to do it.�