Measure 97, which proposed to tax corporate sales, has failed to pass.

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The "No on 97" campaign said they were thankful for the support.

"Our coalition ran a fact-based campaign outlining Measure 97's flaws," said Rebecca Tweed. "We're grateful Oregonians agreed with us and rejected the costly and damaging proposal."

The Yes on 97 campaign said there was a victory, even though they lost.

"While we did not win this election this time, we did win the debate," said Ben Unger of the Yes on 97 campaign. "Because of the work we did no one is going to accept school budget cuts, or more expensive health care, without first asking: Instead of cuts, why not make large corporations pay their fair share? That’s a victory in its own right, and it’s something to be proud of."

One of the most heated and well-funded fights in Oregon was over Measure 97, which proposed to tax gross sales on companies that make more than $25 million a year. Proponents said it’s time for big corporations to pay their fair share, while opponents said the tax on gross sales could wipe out profits for some Oregon companies that operate within tight margins. Both sides said the other skewed the truth. Comcast, which would be impacted by the measure, was even accused of censoring “Yes on 97” ads.

Gov. Brown said if the measure did not pass, the state will face agency budget cuts between 10 and 12 percent.