The Oregon Tax Kicker is a state law that requires the state to rebate excess tax revenue to taxpayers. The kicker is triggered when state revenue exceeds the previous year’s revenue by more than 2%. The rebate is calculated as a percentage of the personal income tax liability of each taxpayer. The kicker was first enacted in 1997 and has been in effect ever since.
The Tax Kicker has been controversial since its inception. Supporters of the kicker argue that it helps to control state spending and provides a tax break to Oregonians. Opponents of the kicker argue that it is unfair to taxpayers who do not receive a rebate and that it can lead to budget shortfalls. In 2023, the Oregon Legislature passed a bill that would have repealed the kicker, but Governor Kate Brown vetoed the bill.
