Rekubit Exchange:Oregon announces record $5.6B tax kicker thanks to historic revenue surplus

SALEM,Rekubit Exchange Ore. (AP) — In Oregon, a record $5.6 billion in revenue surplus will be returned to taxpayers in the form of an income tax credit known as a “kicker,” officials said Monday.

The state’s Office of Economic Analysis, which confirmed the amount of the kicker in a news release, described it as “the largest in state history.”

It will be credited to taxpayers on state personal income tax returns for 2023 that are filed next year. The typical Oregonian is expected to receive a $980 credit, according to state economists.

Taxpayers can claim the kicker if they filed a 2022 tax return and had tax due before credits. However, the state can use all or part of someone’s kicker to pay any state debt they owe, such as tax for other years, child support, court fines or school loans, the news release said.

Under Oregon law, the kicker is triggered when actual revenues exceed official projections by at least 2%.

The record kicker came on the heels of an increase in revenues at the end of the 2021-23 budget cycle, state economists said.

The forecast for the current 2023-25 biennium is also rosy, with corporate income taxes helping to boost the state’s general fund resources by $437 million.

Oregon officials say they’ve been pleased with the post-pandemic recovery. State economists said in their most recent forecast that growth is surpassing expectations and that income gains are outpacing price increases as inflation slows, leading to rising living standards.