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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

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 2 costs, 0 mixed.

Foreign earnings can shrink families' child credit

For tax years beginning January 1, 2025, or later, Oregon counts federally excluded foreign earnings toward its child credit income limit. This can reduce or eliminate the credit; the existing rule also adds back losses above $20,000. The credit remains $1,000 per qualifying child under six at year-end, for up to five children per return. It shrinks when the qualifying income measure exceeds $25,000 and is unavailable when the reduction reaches 100%. Married taxpayers filing separately cannot claim it.

Taxpayers get the full surplus credit

Oregon's personal income tax surplus credit now uses the full qualifying revenue excess, without subtracting the previously required certified cost. The credit applies when General Fund revenue, excluding corporate income and excise taxes, exceeds the two-year estimate by at least 2%. Each taxpayer's share uses their personal income tax liability for the tax year beginning in the prior calendar year. That means the year before the surplus is determined. Oregon does not issue refunds below $1.

Farms gain broader overtime tax relief

For tax years beginning January 1, 2023, or later, qualifying farm businesses can apply their overtime credit against another Oregon business tax. Eligible businesses produce crops, raise animals, or farm aquatic products under industry codes 111 or 112. The credit covers required overtime paid to hourly agricultural workers for work in Oregon. Before claiming it, employers must get a Department of Revenue notice stating their maximum credit for the calendar year.

State agencies must coordinate tax enforcement

The Oregon Liquor and Cannabis Commission and Oregon Health Authority must enter tax enforcement agreements with the Department of Revenue. The agreements cover personal income, corporate income and excise, and corporate activity taxes. They also cover specified cannabis and psilocybin program duties. This agency requirement creates no direct household payment or reporting duty.

Schools receive timber tax money later

Beginning January 1, 2026, Oregon measures eastern and western timber tax fund balances on June 1 instead of May 1. The funds first retain any needed working balance for tax collection. The 60.5% school fund share and 4.5% community college share are due June 15 instead of May 15. The 35% county share still goes to the Department of Revenue for distribution by August 15. The change delays school funding without changing the distribution percentages.

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

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