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OregonHB 23392025 Regular SessionHouseWALLET

Relating to changes to the tax laws of this state; and prescribing an effective date.

Sponsored By: Sponsor information unavailable

Became Law

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 0 costs, 2 mixed.

Bigger child tax credit for young kids

Starting with 2025 tax years, you can claim $1,000 for each child under age 6, up to five children. The credit is reduced as your qualifying income goes over $25,000 and ends when the reduction reaches 100%. Married people who file separately cannot claim this credit. If the credit is larger than your tax, you get a refund.

Bigger surplus refunds for taxpayers

When state General Fund revenues beat the estimate by 2% or more, the full extra amount is returned as a credit on personal income taxes. The law removes a prior cost deduction that used to shrink these credits. This increases the money sent back to taxpayers when a surplus is triggered.

Tax credit to offset farm overtime

Farm employers in crop or animal production who pay required overtime for work in Oregon can claim a refundable credit for a percentage of those excess overtime wages. Licensed labor contractors cannot claim the credit, and pay to immediate family members does not count. You must get a Department of Revenue acknowledgment showing your maximum credit. This applies to tax years beginning on or after January 1, 2023.

Timber tax money for schools and counties

Beginning January 1, 2026, the state measures each timber severance tax fund on June 1 every year. By June 15, 60.5% goes to the State School Fund and 4.5% to the Community College Support Fund. The remaining 35% goes to the Department of Revenue to pay counties, with county payments due by August 15. County shares are based on each region’s small‑tract forestland assessed value.

Updates to school and ESD funding rules

The state updates how it counts local revenues when splitting State School Fund and education service district money. It removes a Department of Revenue offset from the formula and repeals the related statutes. The Education Department must use Revenue Department data to project district property taxes and can request needed information from districts. These changes can raise funding for some districts and lower it for others.

Revenue now leads cannabis tax enforcement

The Liquor and Cannabis Commission and the Health Authority must sign agreements with the Department of Revenue. Revenue administers and enforces listed cannabis and related laws and the connected state income and corporate tax rules. This creates one main tax administrator for the industry and may bring tighter enforcement. It does not change tax rates.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 94 • No: 1

Senate vote • 6/4/2025

Third reading. Carried by Patterson. Passed.

Yes: 29 • No: 1

Senate vote • 5/19/2025

Finance and Revenue: Heard and Reported Out

Yes: 5 • No: 0

House vote • 4/7/2025

Third reading. Carried by Nathanson. Passed.

Yes: 53 • No: 0

House vote • 3/27/2025

Revenue: Heard and Reported Out

Yes: 7 • No: 0

Actions Timeline

  1. Chapter 321, (2025 Laws): Effective date September 26, 2025.

    7/7/2025House

  2. Governor signed.

    6/16/2025House

  3. President signed.

    6/9/2025Senate

  4. Speaker signed.

    6/5/2025House

  5. Third reading. Carried by Patterson. Passed.

    6/4/2025Senate

  6. Carried over to 06-04 by unanimous consent.

    6/3/2025Senate

  7. Carried over to 06-03 by unanimous consent.

    6/2/2025Senate

  8. Carried over to 06-02 by unanimous consent.

    5/29/2025Senate

  9. Carried over to 05-29 by unanimous consent.

    5/28/2025Senate

  10. Carried over to 05-28 by unanimous consent.

    5/27/2025Senate

  11. Carried over to 05-27 by unanimous consent.

    5/23/2025Senate

  12. Carried over to 05-23 by unanimous consent.

    5/22/2025Senate

  13. Second reading.

    5/21/2025Senate

  14. Recommendation: Do pass.

    5/21/2025Senate

  15. Work Session held.

    5/19/2025Senate

  16. Public Hearing held.

    4/21/2025Senate

  17. Referred to Finance and Revenue.

    4/8/2025Senate

  18. First reading. Referred to President's desk.

    4/8/2025Senate

  19. Third reading. Carried by Nathanson. Passed.

    4/7/2025House

  20. Rules suspended. Carried over to April 7, 2025 Calendar.

    4/3/2025House

  21. Rules suspended. Carried over to April 3, 2025 Calendar.

    4/2/2025House

  22. Second reading.

    4/1/2025House

  23. Recommendation: Do pass.

    3/31/2025House

  24. Work Session held.

    3/27/2025House

  25. Public Hearing held.

    1/28/2025House

Bill Text

  • Enrolled

    6/4/2025

    PDF

  • Introduced

    1/10/2025

    PDF

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