BillTrack50 logo
Free Signup Login
Bill

Bill > HB2437

OR HB2437

OR HB2437
Relating to paid compensation claimed as a business deduction; prescribing an effective date.

summary

Introduced
01/13/2025
In Committee
01/17/2025
Crossed Over
Passed
Dead
06/27/2025

Introduced Session

2025 Legislative Measures

Bill Summary

The statement includes a measure digest written in compliance with applicable readability standards. Digest: The Act requires a taxpayer to list on tax return the name, the date of birth and the Social Security number of the persons for whom taxpayer has deducted pay. The Act taxes the amounts that are paid to the persons for whom this is not listed. (Flesch Readability Score: 65.9). Requires a taxpayer to list information about persons to whom the taxpayer has paid compen- sation that is claimed as a business deduction on the taxpayer’s federal income tax return. Requires the taxpayer to add back amounts paid to the person for whom the information is not provided. Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032. Takes effect on the 91st day following adjournment sine die.

AI Summary

This bill requires Oregon taxpayers who claim salary or compensation as a business expense on their federal tax return to provide detailed personal information about each paid employee on their Oregon state tax return. Specifically, for any compensation deducted under section 162 of the Internal Revenue Code, taxpayers must list each recipient's name, date of birth, Social Security number, and the total amount of wages paid during the tax year. If a taxpayer fails to provide complete information for any compensated individual, the bill mandates that the full amount of compensation paid to that person must be added back to the taxpayer's federal taxable income. This new requirement will apply to tax years beginning between January 1, 2026, and January 1, 2032, and will take effect 91 days after the adjournment of the 2025 regular legislative session. The bill aims to increase transparency and accountability in business expense reporting by ensuring more comprehensive documentation of employee compensation.

Committee Categories

Budget and Finance

Sponsors (3)

Last Action

In committee upon adjournment. (on 06/27/2025)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...