Budget & Taxes

] 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.

Increases the state transient lodging tax. Changes the name of the Oregon Conservation Strategy Subaccount to the Recovering Oregon's Wildlife Fund Subaccount. Specifies how moneys attributable to the increase are to be distributed. Applies the transient lodging tax increase to transient lodging charges occurring on or after January 1, 2027. Takes effect on the 91st day following adjournment sine die.

Provides that additional taxes otherwise imposed upon disqualification of land from certain forestland special assessment programs may not be collected if the disqualification is due to the suspension of reforestation requirements as a result of insects or disease. Authorizes the Water Resources Department to grant time extensions for specified water right permit holders to complete construction and apply water beneficially. Modifies requirement that the department's director or principal assistant be a registered engineer. Modifies provision specifying when a proposed order of the department becomes final. Directs the department to facilitate certain water users' enrollment in a federal conservation program. Takes effect on the 91st day following adjournment sine die.

Requires the Department of Transportation to submit a biennial report to the Legislative Assembly recommending a rate for the per-mile road usage charge that would sustainably raise the revenue necessary to maintain the public highways in this state. Declares an emergency, effective on passage.

Expands the rural health care income tax credit to include pharmacist services performed in rural communities. Directs the Office of Rural Health to establish criteria for certifying pharmacists as eligible for the credit. Applies to tax years beginning on or after January 1, 2027. Takes effect on the 91st day following adjournment sine die.

Creates Oregon corporate excise and income tax subtractions for amounts received in resolution of a civil action arising from wildfire. Creates Oregon corporate excise and income tax subtractions for wildfire-related legal fees paid by plaintiffs. Allows a taxpayer to amend a return to claim a refund for the earliest tax year in which a subtraction is allowed. Applies to declarations and executive orders issued on or after January 1, 2018, and before January 1, 2027, and to amounts received, losses incurred and legal fees paid in tax years beginning on or after January 1, 2018. Takes effect on the 91st day following adjournment sine die.

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 percent and no more than 60 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. Takes effect on the 91st day following adjournment sine die.

Authorizes a county with a population of 700,000 or more to, by ordinance, identify zones within the county where the Department of Transportation has estimated that median household income is less than $____ and to reduce or eliminate county registration fees within those zones. Authorizes a county with a population of 700,000 or more to establish a regional allocation plan and allocate county registration fee revenues derived from sub-areas identified in the plan to specific transportation projects within those sub-areas. Requires counties that adopt fee reduction or elimination ordinances or regional allocation plans to annually report to affected cities and to the Legislative Assembly on specified effects of these decisions. Takes effect on the 91st day following adjournment sine die.

Updates the terminology used to describe certain income earned by multinational corporations to reflect a change in the term used in federal law. Aligns sunset dates for earned income tax credit provisions with the underlying sunset date for the credit. Expands the tax credit for certified film production development contributions to allow the use of contributions for the production of commercials. Applies to fiscal years beginning on or after July 1, 2026. [ Provides an exception from the annual filing requirement for the property tax exemption for property burdened by an affordable housing covenant used for owner-occupied housing. Applies to property tax years beginning on or after July 1, 2027. ] Extends the sunset for the property tax exemption for cargo containers. Repeals the requirement that revenue from a tribal tax on the distribution of motor vehicle fuel that is exempt from the gas taxes under Oregon law is subject to the highway-use restrictions under the Oregon Constitution. Extends the applicability of the pass-through business alternative income tax and tax credit through the 2027 tax year. Allows overpayments to be credited as estimated payments for the next tax year. Requires the State Board of Tax Practitioners to register as enrolled agents individuals who are authorized by the Internal Revenue Service to represent taxpayers as enrolled agents. Takes effect on the 91st day following adjournment sine die.

Increases the maximum allowable amount of political contribution personal income tax credit. Applies to tax years beginning on or after January 1, 2026, and before January 1, 2028. Takes effect on the 91st day following adjournment sine die.