Oregon lawmakers propose changes to tax refund system

Oregon lawmakers are discussing changes to the state's "kicker" law, which refunds excess tax revenue to residents. This happens when the state's revenue exceeds predictions by 2 percent or more. In 2023, Oregon taxpayers received part of a $5.6 billion kicker. State economists predict a $1.73 billion kicker for 2026. However, new bills could end the biannual tax refund. Three new bills have been introduced. Senate Bills 399 and 573 focus on the personal kicker, while a House bill aims to change how the corporate kicker is used. Senate Bill 573 is the most significant, as it proposes eliminating the personal kicker entirely. Lawmakers believe this money could be better spent on schools. If Senate Bill 573 passes, it would stop personal kicker refunds starting in 2027. Voters would then need to approve this change in the 2026 election. Senate Bill 399 suggests distributing the personal kicker through checks instead of tax credits, which have not been issued since 2011. House Bill 3360 has bipartisan support and would change the corporate kicker. It aims to direct funds to the School Facility Improvement Fund for school construction and maintenance instead of the State School Fund. Lawmakers are currently reviewing these proposals. Senate Bill 399 and Senate Bill 573 have not yet been scheduled for public hearings. Meanwhile, House Bill 3360 is under review by the House Committee on Education.