Bill > SB105

This bill strengthens tax compliance requirements for public contractors in Oregon by requiring state contracting agencies to verify and enforce tax law adherence as a condition of executing public contracts. Specifically, contractors must demonstrate ongoing compliance with state personal income, corporate excise, and income tax laws, and contracting agencies must verify this compliance before entering into, during, and before terminating a contract. The Department of Revenue is authorized to disclose tax compliance information and may consider factors such as late tax return filing, unpaid taxes, and potential criminal tax investigations when assessing a contractor's compliance. Public contracts must now include explicit representations and warranties from contractors that they have and will continue to comply with state and local tax laws, and contracting agencies can terminate contracts and seek damages for tax law violations. The bill applies to procurements advertised or contracts entered into on or after January 1, 2026, providing state agencies time to prepare for implementation. The legislation aims to ensure that companies receiving public funds are meeting their tax obligations and maintaining good standing with state tax authorities.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB105