An increase in Oregon state revenues at the end of the 2021-23 biennium will result in a larger personal income “kicker” than previously estimated come tax season.
The new estimated total is $5.6 billion, breaking the previous record of $1.9 billion. It’s also $2 billion more than the Oregon Office of Economic Analysis predicted in March.
The typical Oregonian is expected to receive a $980 credit when they file their state income taxes next year under Oregon’s unique “kicker” law, state economists said Wednesday. That’s the median amount, but the average will be $2,100, according to the state.
“This one isn’t just bigger. It’s multiple or a few times bigger,” Democratic Rep. Nancy Nathanson, chair of the House Revenue Committee, said in a Wednesday hearing, according to Oregon Public Broadcasting.
Whenever actual revenues from personal income taxes come in at least 2% higher than the forecast amount, taxpayers get the excess back in the form of a tax credit.
Here is a breakdown from the state revenue forecast of how much people can expect. The adjusted gross income is based on 2020 actual tax returns. The estimated kicker amount is based on 2020 actual tax returns, the $5.6 billion kicker amount and the Oregon Office of Economic Analysis’ forecast tax liability.
|Adjusted Gross Income||Kicker amount (rough estimate)|
|Less than $11,400||$60|
|$11,400 – $28,900||
|$28,900 – $52,400||$1,000|
|$52,400 – $96,200||
|$96,200 – $201,300||$3,800|
|$201,300 – $466,700||$9,200|
|More than $466,700||$44,600|
You can see the full economic forecast at this link.
The Associated Press contributed to this report.