1. What Is Oregon's Current Corporate Minimum Tax?

Oregon imposes a graduated minimum tax on corporations based on their sales volume. Still, even large companies (over $100 million in sales) might pay just $100,000. Many corporations exploit accounting methods to report minimal taxable income in Oregon. So, this minimum tax is often the only state income tax they pay (see Oregon Corporate Minimum Tax Overview).

2. How Could We Raise the Corporate Minimum Tax for Education?

• Increase the Rate on large companies (e.g., those with over $50 million in Oregon sales).

• Earmark Incremental Revenue: Channel every extra dollar above the current minimum directly into a School Improvement Fund that benefits PPS and other Oregon schools.

• Trigger Mechanism: If the State School Fund falls below the Quality Education Model benchmarks, the corporate minimum tax is automatically bumped until funding meets targets.

3. What Are "Capital Projects" in This Context?

Capital projects refer to long-term investments, such as building new school facilities, renovating existing ones, updating technology infrastructure, or expanding capacity. By linking corporate tax revenue to these projects, PPS ensures visible, lasting improvements in local schools and neighborhoods.

4. Is This Fair to Businesses?

Businesses aren't people; "fair" doesn't apply. Many corporations use complex accounting strategies to lower their state income tax bills, sometimes to nearly nothing — even if they have significant Oregon operations. Raising the minimum tax ensures they contribute at least a baseline level to fund the workforce, roads, and schools that support their business activities.

6. What Actions Will PPS Take to Support This Reform?

1. Propose Legislation: PPS can work with state lawmakers to draft a bill adjusting the corporate minimum tax for large businesses and earmarking those funds for education.

2. Board Resolutions: The PPS Board can adopt official positions demanding an increase in the corporate minimum tax whenever the State School Fund falls short of targets.

3. Public Advocacy: Use PPS channels (meetings, press releases) to highlight how chronic underfunding impacts Portland students and urge the state to require more from large corporations.

4. Coordination with Other Districts: Collaborate with other Oregon districts to form a united front, emphasizing how a raised minimum tax boosts schools statewide.

7. Would This Really Raise Enough to Help Portland Schools?

Even a moderate bump in the upper-tier corporate minimum tax could yield tens of millions of dollars annually. When dedicated to a School Improvement Fund, those dollars can support everything from teacher hires to new science labs, particularly in higher-cost areas like Portland.

8. How Is This Different From…

Force a 'Corporate Wealth Dividend' from the State Kicker or CAT?

• That approach modifies or reclaims surplus state revenue via the kicker or expands the Corporate Activity Tax. Raising the corporate minimum tax targets the absolute floor corporations must pay, ensuring they contribute meaningfully even if they claim no net profit in Oregon.

Close Corporate Tax Loopholes and End Special Exemptions?

• Closing loopholes focuses on preventing corporations from exploiting existing rules to avoid taxes. Increasing the minimum tax guarantees a baseline payment, regardless of whether the company uses those loopholes.

Implement a Corporate Education Surcharge?

• A surcharge is typically an extra tax rate on top of regular taxes for large businesses. The minimum tax measure enforces a floor amount, ensuring every corporation pays at least that set level for education.

Tie Corporate Tax Incentives to School Funding Outcomes?

• That policy makes existing or new tax breaks contingent on school funding benefits. Raising the minimum tax goes further by saying, "Even if you don't receive any special incentives, you must still pay this baseline amount to support Oregon's schools."