Eugene To Consider 2 Percent Business Tax Measure
Large Eugene businesses face a potential 2 percent tax on gross profits if voters pass the clean energy initiative.
Updated on Oct. 27, 2026 in Utilities
Live Poll
Should your city use targeted business taxes to fund specific climate initiatives instead of general budgets?
Eugene voters will decide on Measure 20-388 on November 3, 2026, which proposes a 2 percent tax on large businesses to fund local clean energy programs. The initiative targets companies exceeding specific national and local profit thresholds while excluding several industry sectors.
Why it matters
Proponents argue the tax is necessary to address local emissions, while opponents contend it circumvents standard budget processes and could raise consumer prices. Operators must evaluate whether their revenue levels cross the defined thresholds for this new tax mandate.
The measure targets an estimated $15 million in annual revenue through a 2 percent tax on businesses meeting the $1 billion national and $500,000 local profit thresholds. Funds are earmarked for renewable energy programs (60%), job training (25%), green infrastructure (10%), and innovation (5%).
The players
Eugene Area Chamber of Commerce
A business advocacy organization representing local companies and opposing the measure.
University of Oregon
A major public research university that operates the largest single source of gas emissions in the city.
The details
The proposed tax applies to gross profits in Eugene, specifically exempting revenue from grocery, utility, pharmaceutical, and construction services. Collected funds are designated for carbon sequestration and energy efficiency projects. If passed, the tax functions as an additional levy on large corporate entities operating within city limits to support renewable transition initiatives.
Timeline
November 3, 2026: Measure 20-388 appears on the ballot.
June 2026: University of Oregon allocated $15 million for electric boilers.
Market Landscape
Measure 20-388 follows the funding model established by the 2018 Portland Clean Energy Fund. This initiative represents a broader local trend of using targeted corporate taxes to bypass conventional municipal budget processes for climate goals.
Business owners in Eugene should review their local gross profit figures to determine if they meet the $500,000 threshold and the $1 billion national profit test. Financial and tax planning counsel should be consulted to assess the potential impact of this tax on operational margins.
The takeaway
The ballot measure highlights a rising movement to leverage corporate revenue for local environmental mandates. Operators should monitor the election outcome to see if they need to adjust their local fiscal forecasting or compliance tracking for the 2027 tax cycle.
Further reading
For broader trends in infrastructure funding, visit Utilities.
Live Poll
Should your city use targeted business taxes to fund specific climate initiatives instead of general budgets?
