OREGON HOUSE REPUBLICANS

HB 2067 IMPOSES BROAD SUNSETS ON TAX CREDITS WITHOUT

REQUIRING FUTURE LEGISLATIVE REVIEW 

Tax Credits Benefitting Seniors, Oregonians with Disabilities Left Vulnerable

SALEM—House Republicans today opposed HB 2067, a bill that imposes “sunset dates” on a broad range of tax credits and incentives without requiring the Legislature to review or renew them in the future.

“The Legislature already has the ability to review tax credits and determine whether they are achieving their intended goals,” said Rep. Cliff Bentz (R-Ontario), Vice-Chair of the House Revenue Committee. “It is a mistake to apply a one-size-fits-all approach to a diverse set of tax credits without requiring the Legislature to review or renew these credits in future sessions.”

HB 2067 targets dozens of targeted tax credits, including those helping seniors afford long-term care insurance and in-home care, as well as tax credits that help parents cope with the high costs of raising disabled children. Rather than mandating the review of these tax credits, HB 2067 leaves them vulnerable to legislative inaction in upcoming sessions.

“This broad-brushed approach will jeopardize tax credits that help Oregon achieve important social and economic development goals,” said Rep. Scott Bruun (R-West Linn), a House Revenue Committee member. “While it’s a worthy objective to ensure tax credits are being used wisely, HB 2067 could potentially result in hundreds of millions in higher taxes on Oregonians.”

Earlier this session, House Republicans introduced a better alternative to reviewing Oregon’s tax expenditures. Rep. Sal Esquivel (R-Medford) introduced HJR 20 to amend the state constitution to require the Legislature to review one-third of all income tax credits every session. Any tax credit not approved by the Legislature would automatically expire after six years.

“HJR 20 establishes a responsible process for reviewing and renewing Oregon tax expenditures,” Rep. Esquivel said. “Under HB 2067, future legislatures could quietly allow these tax credits to expire and quietly raise taxes on Oregonians.”

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