Bill > SB407

This bill reduces the tax rate on capital gains for individuals and corporations in Oregon, with a specific focus on lowering the tax rate for net capital gains. Under the new legislation, any gain treated as net capital gain for federal tax purposes will be taxed at a flat rate of 5%, regardless of an individual's or corporation's total taxable income. This change applies to tax years beginning on or after January 1, 2025, and effectively replaces previous regulations about capital gains taxation. The bill amends multiple sections of Oregon Revised Statutes (ORS), including 316.037 for personal income tax, 317.061 for corporate income tax, and 318.020 for corporate taxation. The bill will take effect 91 days after the adjournment of the 2025 regular legislative session, and it repeals previous statutes related to capital gains taxation. By implementing this lower tax rate, the legislation aims to potentially make Oregon more competitive in attracting and retaining businesses and investments by offering a more favorable tax environment for capital gains.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB407