State Representative Sal Esquivel is proposing a sales tax to replace property tax

Oregonians have said it time and time again that they don’t want a sales tax.

Voters have turned down various versions 9 times in the last 90 years.

But Representative Sal Esquivel is hoping Oregon voters will change their minds.

Esquivel wants to impose a 4.5% sales tax on non-essential items to replace property taxes on the first $500,000 dollars of owner-occupied homes.

But local business owners aren’t too sure about the idea of a sales tax.

“When you see a price on something, you know that’s what the price is,” business owner Dan Ebert said.

Dan Ebert has been the owner of Central Art Supply for 18 years.

He says he isn’t thrilled about the idea of a sales tax.

“That’s one thing that keeps Oregon kind of different from 48 other states in the union,” Ebert said.

But State Representative Sal Esquivel wants to join the majority of states and replace property taxes on the first $500,000 dollars of owner-occupied homes with a 4.5% sales tax.

He says he was inspired to make this proposal after seeing an elderly man forced to sell his house when he couldn’t pay his taxes.

“He was an elderly gentleman on a fixed income, and I thought that was the most horrible thing I had ever seen in my life,” Esquivel said.

Esquivel calls his proposal a ‘luxury tax’ meaning food, clothing, medical expenses and many other essential items wouldn’t be taxed.

But businesses that don’t fall under that category could feel the impact of a new tax.

“I know it’s kind of interesting with a lot of my vendors – that I buy stuff from – because they always want sales tax certificates which we don’t have them because we don’t have any sales tax in Oregon,” Ebert said.

Ebert says the sales tax might not be a bad idea it’s just something he’d have to get used to.

He’s only worried about the rate increasing.

“Whenever I hear sales tax and the government, I always worry about those numbers creeping up,” Ebert said.

Esquivel says the government couldn’t raise the tax without approval because that’s against the state constitution.

He says the decision is ultimately up to voters.

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