Bill
Bill > HB3914
OR HB3914
Relating to an income tax subtraction for tips received; prescribing an effective date.
summary
Introduced
03/10/2025
03/10/2025
In Committee
03/11/2025
03/11/2025
Crossed Over
Passed
Dead
Introduced Session
2025 Legislative Measures
Bill Summary
The statement includes a measure digest written in compliance with applicable readability standards. Digest: The Act exempts tips from personal income tax. (Flesch Readability Score: 71.8). Creates an Oregon personal income tax subtraction for tips received by the taxpayer during the tax year. 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 creates a new Oregon personal income tax subtraction specifically for tips received by taxpayers, allowing individuals to subtract from their federal taxable income any tips that are properly reported as wages on their federal income tax return. The tax subtraction will apply to tax years beginning on or after January 1, 2026, and before January 1, 2032, effectively providing a six-year window for taxpayers to benefit from this provision. This means that service industry workers, such as restaurant servers, bartenders, and other tip-based workers, will be able to exclude their tip income from their Oregon state income tax calculations during this period. The bill will officially take effect 91 days after the 2025 regular session of the Oregon Legislative Assembly adjourns sine die (a formal term meaning the session ends without setting a date for a future meeting). By creating this tax subtraction, the bill aims to provide financial relief for workers who rely on tips as a significant portion of their income.
Committee Categories
Budget and Finance
Sponsors (22)
Shelly Boshart Davis (R)*,
Darin Harbick (R)*,
Mark Owens (R)*,
Werner Reschke (R)*,
Anna Scharf (R)*,
Greg Smith (R)*,
Court Boice (R),
Vikki Breese-Iverson (R),
Ed Diehl (R),
Christine Drazan (R),
Darcey Edwards (R),
Lucetta Elmer (R),
Jeff Helfrich (R),
Cyrus Javadi (R),
Bobby Levy (R),
Rick Lewis (R),
Kevin Mannix (R),
Emily McIntire (R),
Virgle Osborne (R),
Alek Skarlatos (R),
Boomer Wright (R),
Dwayne Yunker (R),
Last Action
Motion to withdraw from Revenue failed. Ayes, 30; Nays, 26--Bowman, Chaichi, Chotzen, Fragala, Gamba, Gomberg, Grayber, Helm, Hudson, Isadore, Kropf, Lively, Marsh, McDonald, McLain, Nathanson, Nelson, Neron, Nguyen D, Nosse, Pham H, Sanchez, Sosa, Tran, Valderrama, Watanabe; Excused, 3--Cate, Nguyen H, Walters; Excused for Business of the House, 1--Speaker Fahey. (on 04/15/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3914 |
| Open Government Impact Statement for HB3914 INTRO | https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureAnalysisDocument/87283 |
| BillText | https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureDocument/HB3914/Introduced |
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