Oregon Senate 900 Court St., N.E. Salem OR  97301 www.leg.state.or.us/senate                                                            March 7, 2011

News Release

Contact:   Robin Maxey                                           MollyWoon                                          

                 (503) 986-1605                                          (503) 986-1074  

robin.maxey@state.or molly.woon@state.or.us

Leaders Say Senate Will Approve

Tax Savings for Families and Businesses

(SALEM) --Senate President Peter Courtney, President Pro Tempore Ginny Burdick and Majority Leader Diane Rosenbaum said Monday they expect the Senate to concur in House amendments to Senate Bill 301 as early as Tuesday morning – saving Oregon families and businesses millions of dollars in taxes.

“We moved Senate Bill 301 out of committee and off the floor quickly to give Oregonians certainty as they prepare their 2010 taxes,” said Burdick, who is also chair of the Senate Finance and Revenue Committee. “This bill received an overwhelming bi-partisan vote in the House. Sending the bill to conference committee at this point would only cause further delay and create hardship for Oregon families and college students.”

By reconnecting Oregon statutes to provisions in the federal tax code that have been modified since 2009, the measure will save Oregon families on their state income tax returns for 2010. One key provision is an above-the-line, means-tested tax deduction of up to $4,000 for college tuition and related expenses that could help over 50,000 tax filers.

Additionally, SB 301 reconnects to a federal provision that allows parents to keep their children on their health care plans up to age 27 tax free, as proscribed in the federal health care overhaul passed last year.

The House amended the bill to reconnect Oregon to federal bonus depreciation provisions for the 2011 tax year after it was discovered last week that a 2009 measure had failed to automatically connect to federal law in 2011 as widely assumed. The amended SB 301, which passed the House on 41-19 vote earlier today, will save Oregon businesses an estimated $93 million, giving businesses an incentive to make investments and grow Oregon’s economy.

“By concurring in these amendments, we are in the same place we thought we were when the Senate initially passed Senate Bill 301,” said Rosenbaum (D-Portland). “This bill still helps Oregon’s students who are working their way through college. It still allows parents with young adult children on their health insurance plan to claim a deduction. And it includes the ability for Oregon businesses to claim the bonus depreciation deduction.”

The Senate approved SB 301 by a 29-0 vote February 17.

“The Senate took the initiative to help Oregon taxpayers by moving quickly on this legislation last month,” said Courtney (D-Salem/Gervais/Woodburn) “As a Senate we will complete our work and move on to addressing the other challenges we face this session – like the budget, higher education reform, creating jobs and redistricting.”

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