Bill > HB2110

This bill addresses local income tax regulations in Oregon by requiring political subdivisions that impose income taxes to conform to state law for determining net income. Specifically, the bill mandates that provisions in ORS chapters 314, 316, and 317 governing net income determination, including income apportionment and sourcing, will apply to any local income taxes imposed by political subdivisions. The bill includes an important exception for existing business license taxes in cities that are already in effect on January 1, 2025. Additionally, the bill repeals the authority of a metropolitan service district to impose an income tax and amends related statutes to remove references to this power. The legislation will apply to all local tax ordinances that have not received voter approval before January 1, 2025, and will take effect 91 days after the adjournment of the 2025 regular legislative session. The primary goal appears to be standardizing local income tax calculations by aligning them more closely with state-level income tax determination methods.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2110