Personal and corporate income tax collections were higher than forecast as job growth remained strong in Oregon, state economists said on Wednesday.
All industries are expected to grow this year and next, with construction, professional and business services and leisure-hospitality leading the way, state economists said Wednesday. Construction jobs grew by 9 percent in the 2018 fiscal year and were expected to grow another 4 percent in FY 2019.
Personal and corporate income tax collections were higher than forecast and Oregonians are expected to benefit from the biggest kicker, or tax refund, in more than a decade.
State economists presented their revenue and economic outlooks at a Capitol hearing room on Wednesday, saying all industries are expected to grow in Oregon this year and next, with construction, professional and business services and leisure-hospitality leading the way.
State economists delivered mixed news for Oregonians on Wednesday morning, confirming that taxpayers are likely to receive a “kicker” tax rebate in two years while warning it could coincide with a recession.
“These are always really the things that are so difficult for economic forecasters to get ahold of, when times are changing,” state economist Mark McMullen said during a presentation to lawmakers at the Capitol.
Once again the idea of repealing Oregon’s income tax kicker is being chatted up in Salem. That’s no surprise: The 2019 Legislature may face as much as a $1 billion revenue shortfall, and raising taxes is far easier than cutting programs or bringing reason to the state’s underfunded Public Employees Retirement System.
Ditching the kicker does not solve the problem, and while changes to it might make sense, elimination of the program does not. It is one of the only ways Oregonians have of trying to keep state spending under control.
Sen. Tim Knopp, a Republican from Bend, says he expects lawmakers will look at scaling back or eliminating Oregon's unique kicker tax rebate during the 2019 legislative session.(Oregonian file photo)
One of the Oregon kicker's fiercest defenders says he expects lawmakers will consider changing or eliminating the state's unique tax refund law as they search for revenue next year.
"I think the kicker will be discussed in the whole dialogue in revenue reform," Sen. Tim Knopp, a Republican from Bend, said in an interview this week.
Oregon’s surging tax collections show no signs of abating — and that means you’re probably going to get some money back. Again.
The state’s latest revenue forecast, released Wednesday, shows personal income tax revenues for the 2017-19 fiscal biennium stand to come in $555 million above initial forecasts. That’s more than enough to trigger Oregon’s unique “kicker” provision, which doles money back to taxpayers when taxes come in at more than 2 percent above estimates.
State economists announced Wednesday that increasing state revenues likely will trigger Oregon’s “kicker” tax refund for the 2017-19 biennium. But what exactly does that mean? Here are some answers:
Continued strong economic growth in Oregon means individuals could get a total of $555 million in personal income tax refunds in two years.
Oregon’s quarterly revenue forecast shows the state’s economy is growing faster than expected, leading to a projected increase in tax revenues, state economist Mark McMullen told legislators Wednesday.