Oregon Taxpayers Set to Receive Record $5.6 billion Kicker
By Joe Hathaway on Friday, September 1st, 2023 in More Top Stories Northeastern Oregon News
SALEM — Oregon taxpayers are set to receive their biggest kicker tax rebate on record when they file their taxes next spring — a $5.6 billion refund, according to near-final forecasts issued this week.
The median Oregonian is now set to receive a $980 rebate when they file their taxes next year, according to the forecast from state economists, with an average kicker of about $2,100.
Since the kicker is proportional to income tax liability, higher-earning Oregonians are set to receive more money back next year.
The latest kicker fund bump stems from a larger ending balance than previously expected, now that the state’s accountants are closing the books on the 2021-23 biennium, according to the report.
Oregon’s kicker rebate goes out during even-numbered years — when Oregonians file their taxes for the preceding odd-numbered year — due to the state’s two-year budget cycle. In some years it may not go out at all; the rebate only kicks in when general fund revenues at the end of the biennium turn out to be at least 2% higher than the state’s economic forecasters predicted at the start of the cycle.
Inflation continues to worry economists in the state; however, they say that inflation has slowed considerably in the past year. “The consensus of economic forecasters is now that the economic soft landing is the most likely scenario.”
Oregon Governor Tina Kotek issued a statement this week. “This revenue forecast provides encouraging news about the state’s economic stability. We must leverage the opportunity presented by another positive forecast to invest in housing production and other urgent needs to support Oregon families and the state’s long-term economic growth.”
Republicans also issued statements in response to the revenue forecast. Senate Republican Leader Tim Knopp says, “We must capitalize on this moment with real assets – not empty policies – to leave our state better off for the next generations. Oregonians are all too familiar with high costs of living, excessive taxes, and a severe lack of housing thanks to decades of failed policies pushed by Democrats. This is the time to boldly invest in infrastructure like roads, sewer systems, and water for all Oregonians who want to build or buy a home affordably.”
