WHY DOES THE LEGISLATURE
NEED REVENUE IMPACTS?
In considering the immediate and long-term effects of tax policy changes, legislators consider the effect the proposed policy changes will have on the tax revenue stability for the state currently and in the future. The amount of money the legislature can spend each biennium depends on the revenue available in the state. A change in Oregon's tax structure usually changes the amount of money available for spending.
Policymakers rely on the revenue impact statement to tell them how proposed bills affect revenue. Without a revenue impact statement, policy makers would be implementing new taxes, tax exemptions or credits without a broad understanding of the overall economic impact on local and state government revenue in both the immediate and long-term.