Bill > SB573

This bill eliminates Oregon's personal income tax "kicker" law, which previously allowed taxpayers to receive a tax refund when state revenues exceeded initial estimates by more than 2%. Currently, if state General Fund revenues surpassed projections, taxpayers would receive a credit on their income taxes based on their prior year's tax liability. The bill removes all provisions related to calculating and distributing these surplus revenue refunds and instead redirects any excess revenue exceeding 2% from corporate income and excise taxes to provide additional funding for public education, specifically kindergarten through 12th grade. The changes will apply to biennial budget periods ending on or after June 30, 2027, and will only take effect if a related constitutional amendment (Senate Joint Resolution 15) is approved by voters in the November 2026 general election. By repealing the kicker mechanism, the bill aims to stabilize state revenue and increase funding for education by preventing automatic tax refunds when state revenues are higher than initially projected.

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB573