Budget & Taxes

] [ Reduces taxes imposed under various tax programs, operative conditioned upon imposition of a statewide retail sales tax dedicated to specified purposes. Directs the Department of Revenue to estimate the revenue lost to tax reductions and to direct an equal amount of revenue to various purposes. ] Updates the connection date to the federal Internal Revenue Code and other provisions of federal tax law. Increases the amount of the earned income tax credit allowed as a percentage of the federal earned income tax credit. Disconnects from, and requires addback of amounts for, federal provisions allowing deductions of personal auto loan interest and bonus depreciation and allowing exclusion of gain from small business stock. Applies to tax years beginning on or after January 1, 2026. Creates a personal income or corporate excise tax credit for a taxpayer creating new jobs in 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.

Requires public contractors to demonstrate and maintain tax compliance, through a certification process, as a condition of the execution of a public contract. Becomes operative January 1, 2027. Directs the Secretary of State to study methods for collecting information through business registry function to ensure tax compliance by persons doing business in this state. Takes effect on the 91st day following adjournment sine die.

] Allows net local transient lodging tax revenue to be used for resiliency grants for small businesses in the restaurant and lodging industry. Allows city and county services for which net local transient lodging tax revenue may be used to be provided either directly by the city or county or indirectly by a special district. Changes the division of allowable uses of net local transient lodging tax revenue from at least 70 percent for tourism-related expenses and no more than 30 percent for city or county services, to at least [ 40 ] 50 percent and no more than [ 60 ] 50 percent, respectively. Allows units of local government with restricted grandfathered local transient lodging tax regimes to take advantage of the new provisions of the Act. Establishes biennial reporting by local governments of amounts and uses of local transient lodging tax revenue , the reported information to be aggregated by the Legislative Revenue Officer and submitted to the Legislative Assembly . Directs the Legislative Revenue Officer to conduct a study of the percentage requirements for allowable uses of local transient lodging tax revenue as amended by the Act and to submit the findings to the Legislative Assembly. Takes effect on the 91st day following adjournment sine die.

Modifies the crime of theft of services to include partial payments. Provides that a prosecution for theft of services does not preclude other forms of relief. Directs the Interagency Compliance Network to develop investigative methods concerning persons who may be committing theft of services and not complying with taxation and employment laws. Punishes knowingly entering into a contract with an unlicensed labor contractor, if committed by a direct contractor or subcontractor, by a maximum of 364 days' imprisonment, $6,250 fine, or both. Punishes a second or subsequent conviction by a maximum of five years' imprisonment, $125,000 fine, or both. Increases the penalty for the intentional use of a contractor's license number without authorization. Punishes by a maximum of five years' imprisonment, $125,000 fine, or both. Increases the penalty for the use of a contractor's license number with the intent to deceive the public. Punishes by a maximum of five years' imprisonment, $125,000 fine, or both.

Creates a corporate excise tax credit for each of the first three years that a bank does business in this state. Applies only to Oregon-chartered banks that commence business in tax years beginning on or after January 1, 2027, and before January 1, 2033. Takes effect on the 91st day following adjournment sine die.