Oregon State Senator Dick Anderson introduced a bill Wednesday designed to send stimulus money back to Oregonians after it has been taxed by the state.
Senate Bill 842 or the “Stimulus Check Protection Act,” would send a reimbursement check for taxed stimulus money.
Lincoln City residents have expressed disdain over the taxing of stimulus funds and have taken to local media outlets and social media to voice their concerns.
“There is no reason to be nickel and diming Oregonians by taking part of their stimulus check,” Anderson said. “The State of Oregon is doing better than expected with tax revenues.”
According to State House Rep. David Gomberg (D) Oregonians are likely to see a kicker tax refund on their 2021 returns as Oregon must give money back to the people when the state brings in more money than expected.
Because of a loophole in the state tax code, an estimated 870,000 Oregonians will be sending part of their federal stimulus checks to state government. Anderson said middle-class families will be the hardest hit by taxing stimulus funds.
Senator Anderson’s office had previously indicated that people may have to amend their tax filing or get a tax credit on 2021’s taxes. However, SB 842 includes language that would require the Department of Revenue to send checks for the amount of taxes taken out of Oregonian’s stimulus checks. This is similar to how the Oregon Kicker Tax refund is conducted.
“We realized that making working people jump through hoops to get their money wasn’t the right approach,” Anderson said. “To ensure that most Oregonians get their money back, we opted to go for a system that proactively sends checks to those affected.”
Senate Bill 842 was first read Wednesday on the Senate floor and is in the Senate Committee On Finance and Revenue.
