Oregon Taxpayers to Receive $987 Million Kicker

Oregon is projected to issue a nearly $1 billion kicker tax credit in 2026, significantly higher than previous forecasts, due to exceeding expected personal and corporate tax revenues. Economists attribute this increase to a solid overall economic performance, though they caution about looming uncertainties, particularly in key industries facing downturns. The kicker law mandates refunds when tax payments exceed budgeted amounts by at least 2%, leading to a forecasted personal kicker of $987 million and a corporate kicker of $883 million for education. While lawmakers celebrate the revenue increase, they also express concerns over the potential for a slowing labor market and rising unemployment. Governor Tina Kotek and Democratic leaders emphasize fiscal prudence and focus on essential services amidst this economic stability. The state is also grappling with significant wildfire impacts, further complicating the economic outlook.