by Sarah Curry
Director of Fiscal Policy Studies
The state of Oregon will send $402 million back to taxpayers next year after the state had a surplus in personal income taxes. According to The Register-Guard,
The estimated median rebate under Oregon’s “kicker” law will be $124, though the value varies significantly based on income.
Oregon’s kicker law was created in the 1980s as a check on government growth. It’s triggered when the state collects at least 2 percent more than anticipated during a two-year budget cycle. When that happens, the additional money is kicked back to taxpayers.
Tax increases from 2013 and the economic recovery helped Oregon generate about 3 percent more than anticipated in personal income taxes during the 2013-2015 budget period.
This is a nice change. Instead of a state spending the unanticipated revenue on some pork barrel project, they are returning it to the taxpayers. Might be something NC lawmakers want to consider since they still haven’t finished the budget.