Oregon Ballot Initiative Filed to Create Financial Assets Tax on Multimillionaires

Thursday, October 15, 2026

On Oct. 8, 2026, the Fight for Our Future coalition filed an initiative petition to create a new financial assets tax on multimillionaires (FAT) with the Oregon secretary of state’s Elections Division. Initiative Petition 2028-037 (IP 37) is in the initial signature phase and is proposed for inclusion on the ballot in the November 2028 general election. If passed, IP 37 would impose an additional tax on taxpayers with a net worth above $30 million, and the revenue from the tax would be used to fund a refundable low-income tax credit for certain qualified taxpayers, starting in 2029.

As drafted, IP 37 would create a new chapter within the Oregon Tax Code. The FAT would be imposed annually on taxpayers with a net worth of $30 million or more. For purposes of the FAT, a taxpayer would be defined as “any natural person, estate, trust or beneficiary whose income” is subject to Oregon’s personal income tax, including residents, nonresidents and part-year residents. 

“Net worth” would be broadly defined to “mean the sum of the current market value of all assets, including real property, cash, savings accounts, bonds and other investments, after deducting outstanding liabilities, as defined in ORS 311.666.”

ORS § 311.666 provides definitions related to deferred collection of homestead property.

Subsection (7)(a) of that provision defines “net worth” in the same manner as the petition, while subsection (7)(b) excludes the value of a homestead for which the property tax deferral is claimed, as well as the cash value of life insurance policies on the life of the taxpayer or tangible personal property owned by the taxpayer. ORS § 311.666 does not otherwise define or reference “outstanding liabilities.”

If triggered, the FAT would be calculated based on the assessed value of a taxpayer’s financial assets as of Dec. 31 of each year and would be imposed at the following rates:

• 1% if the taxpayer’s net worth exceeds $30 million but does not exceed $50 million;
• 1.1% if the taxpayer’s net worth exceeds $50 million but does not exceed $100 million; and 
• 1.2% if the taxpayer’s net worth exceeds $100 million.

The FAT would be calculated based on the taxpayer’s “financial assets,” which is also broadly defined in the petition. Specifically, financial assets would include “cash and cash equivalents, savings, checking, money market and other deposit accounts; bonds and other debt instruments; any security, as defined in ORS 78.1020, that is dealt in or traded on an established securities exchange or securities market; investment company securities, as defined in ORS 78.1030; private equity funds, hedge funds, and venture capital funds; cryptocurrency and other digital assets recorded or represented using blockchain or distributed ledger technology; and other securities and financial instruments.”

Real property, tangible personal property, a direct ownership interest in a privately held business, or any property defined in ORS § 310.140(1)(s) would be carved out of the definition of financial assets; however, interests in a fund, partnership, limited liability company, trust or other entity formed or operated with the primary purpose of holding, managing, or investing in financial assets would be considered a financial asset, as opposed to an ownership interest in a privately held operating business, for the purposes of the proposed tax.

IP 37 does not contain any specifics regarding assessments or administration of the FAT, but the proposal would require the Oregon Department of Revenue to adopt rules to administer the act, if passed. IP 37 also proposes adding the FAT to the list of exceptions to Oregon’s general rule that intangible personal property is not subject to property tax. Further, while the income thresholds for purposes of the proposed tax credit would be adjusted for inflation, the thresholds related to the application of the FAT would not be. 

Because IP 37 is intended to redistribute wealth from high-income taxpayers to low-income taxpayers, it includes a proposed refundable 30% tax credit for taxpayers with income of $50,000 or less for single taxpayers and married filing separate taxpayers, and $100,000 or less for married filing joint taxpayers. Certain adjustments would be required for single filers whose income is between $45,000 and $50,000 and married filers filing jointly whose income is between $90,000 and $100,000. If enacted, the proposal would require that income thresholds be adjusted for inflation after the tax has been in effect for two years. 

The revenue from the FAT would first go to paying the administrative costs incurred in regulating the tax. The remainder would fund the tax credit. Should the tax’s revenue surpass the total credit amount, the excess would go to the Oregon General Fund.

IP 37 remains in the early stages of the ballot initiative process. Proponents must first gather 1,000 signatures to begin the ballot-title qualification process, and additional procedural steps are required before the measure would be eligible for the ballot — with potential challenges along the way. If the measure advances and is ultimately passed, in addition to likely legal challenges regarding the constitutionality of the FAT, issues related to valuation, assessment and administration of the tax would remain.

*Special thanks to Law Clerk W. Cahler Fruchtman for contributing to this post.