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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
A-Engrossed
House Bill 3360
Ordered by the House April 16
Including House Amendments dated April 16
Sponsored by Representatives HUDSON, NERON; Representatives MCINTIRE, OWENS, RESCHKE, WRIGHT
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure. The statement includes a measure digest written in compliance with applicable readability standards.
Digest: The Act changes the uses of the corporate “kicker.” (Flesch Readability Score: 66.1).
Requires that moneys from the corporate income and excise tax kicker be used for the funding
of school construction and maintenance projects and infrastructure improvements. Limits availabil-
ity to certain districts.
Applies to biennia ending on or after June 30, 2027.
Takes effect only if House Joint Resolution 13 (2025) is approved by the people at the next
regular general election. Takes effect on the effective date of the constitutional amendment pro-
posed in House Joint Resolution 13 (2025).
A BILL FOR AN ACT
Relating to capital funding for schools; creating new provisions; amending ORS 291.345, 291.349 and
327.330; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 291.345 is amended to read:
291.345. (1) For purposes of implementing Article IX, section 14 (3), of the Oregon Constitution,
if revenues received by the General Fund from the corporate income and excise taxes during the
biennium exceed the amount estimated to be received from such taxes for the biennium by two
percent or more, the Legislative Assembly shall appropriate an amount equal to the total amount
of the excess to the [State School Fund established by ORS 327.008 for apportionment as provided in
ORS 327.008] School Facility Improvement Fund created in ORS 327.320, for appropriation as
provided in ORS 327.330 (4) to (6).
(2) The amount appropriated under this section shall be in addition to the total amount of re-
venues the Legislative Assembly would otherwise appropriate, allocate or make available for the
biennium for funding [kindergarten through grade 12 public education]public school construction
projects, infrastructure improvements and maintenance projects if excess revenues described
in subsection (1) of this section were not available.
SECTION 2. ORS 327.330 is amended to read:
327.330. (1) Subject to the rules of the State Board of Education, the Superintendent of Public
Instruction shall make grants to school districts that apply therefor for the purpose of construction
and maintenance of public school facilities.
(2) Grants shall not exceed $500,000 in any biennium to any school district. In addition, a com-
bination of districts may submit a joint grant application in an amount not to exceed $500,000.
However, a district or combination thereof may apply in subsequent bienniums for additional grants
for the same facility.Grants must be matched at least one local dollar for four state dollars by the
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1306 A-Eng. HB 3360
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district or combination thereof.
(3) The state board by rule shall establish criteria for grant approval. Such criteria shall include
but not be limited to:
(a) The age of public school facilities, the degree of overcrowding and the absence of facilities
that are considered necessary to accomplish the educational goals of the district and this state; and
(b) Maintenance and reconstruction needs related to the deterioration of existing public school
facilities, which deterioration has the potential of affecting the health and safety of students.
(4) Notwithstanding subsections (1) to (3) of this section, grants made under this section
from moneys appropriated pursuant to ORS 291.345 (1) shall be awarded solely for funding
of public school construction projects, infrastructure improvements and maintenance
projects.
(5) The making of grants under this section shall be awarded in a manner that gives
priority:
(a) For projects that address health and safety needs of students and staff; and
(b) For districts that have reserve funds of not more than eight percent of the district’s
adopted budget.
(6) After the prioritization required by subsection (5) of this section, grants under this
section shall be available to school districts that have submitted general obligation bonds to
electors of the district during the preceding three years and have not received voter approval
for those bonds.
SECTION 3. ORS 291.349 is amended to read:
291.349. (1) As soon as practicable after adjournment sine die of the odd-numbered year regular
session of the Legislative Assembly, the Oregon Department of Administrative Services shall report
to the Legislative Revenue Officer and the Legislative Fiscal Officer the estimate as of July 1 of the
first year of the biennium of General Fund and State Lottery Fund revenues that will be received
by the state during that biennium. The Oregon Department of Administrative Services shall base its
estimate on the last forecast given to the Legislative Assembly before adjournment sine die of the
odd-numbered year regular session on which the printed, adopted budget prepared in the Oregon
Department of Administrative Services is based, adjusted only insofar as necessary to reflect
changes in laws adopted at that session. The report shall contain the estimated revenues from cor-
porate income and excise taxes separately from the estimated revenues from other General Fund
sources. The Oregon Department of Administrative Services may revise the estimate if necessary
following adjournment sine die of a special session or an even-numbered year regular session of the
Legislative Assembly, but any revision does not affect the basis of the computation described in
subsection (3) or (4) of this section.
(2) As soon as practicable after the end of the biennium, the Oregon Department of Adminis-
trative Services shall report to the Legislative Revenue Officer and the Legislative Fiscal Officer,
or the Legislative Assembly if it is in session, the amount of General Fund revenues collected as
of the last June 30 of the preceding biennium. The report shall contain the collections from corpo-
rate income and excise taxes separately from collections from other sources.
(3) If the revenues received from the corporate income and excise taxes during the biennium
exceed the amounts estimated to be received from such taxes for the biennium, as estimated after
adjournment sine die of the odd-numbered year regular session, by two percent or more, the total
amount of that excess shall be retained in the General Fund and used, in the manner described in
ORS 291.345, to provide additional funding for [public education,] public school construction
[2] A-Eng. HB 3360
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projects, infrastructure improvements and maintenance projects, for the benefit of pupils
enrolled in kindergarten through grade 12.
(4) If the revenues received from General Fund revenue sources, exclusive of those described in
subsection (3) of this section, during the biennium exceed the amounts estimated to be received from
such sources for the biennium, as estimated after adjournment sine die of the odd-numbered year
regular session, by two percent or more, there shall be credited to personal income taxpayers an
amount equal to the total amount of that excess, reduced by the cost certified by the Department
of Revenue under ORS 291.351 as being allocable to credits described under this subsection. The
excess amount to be credited shall be credited to personal income taxpayers in a percentage amount
of prior year personal income tax liability as determined under subsection (5) of this section.
(5)(a) If there is an excess to be credited under subsection (4) of this section, on or before No-
vember 1, following the end of each biennium, the Oregon Department of Administrative Services
shall determine and certify to the Department of Revenue the percentage amounts of credit for
purposes of subsection (4) of this section. The percentage amounts determined shall be percentage
amounts to the nearest one-tenth of a percent that will distribute the excess to be credited to per-
sonal income taxpayers.
(b) The percentage amount applicable to subsection (4) of this section shall equal the amount
distributed under subsection (4) of this section divided by the estimated total personal income tax
liability for all personal income taxpayers for tax years beginning in the calendar year immediately
preceding the calendar year in which the excess is determined.
(c) The amount of the surplus credit under subsection (4) of this section is determined by
multiplying the percentage amount determined under paragraph (b) of this subsection by the total
amount of a personal income taxpayer’s tax liability for the tax year beginning in the calendar year
immediately preceding the calendar year in which the excess is determined in order to calculate the
amount to be credited to the taxpayer.
(d) The credit shall be determined based on the tax liability as shown on the return of the tax-
payer or as corrected by the Department of Revenue.
(e) The credit shall be computed after the allowance of a credit provided under ORS 316.082,
316.131 or 316.292, but before the allowance of any other credit or offset against tax liability allowed
or allowable under any provision of law of this state, and before the application of estimated tax
payments, withholding or other advance tax payments.
(f) For personal income taxpayers, if a credit applied against tax liability as described in para-
graph (e) of this subsection reduces tax liability to zero and an amount of the credit remains unused,
the remaining unused amount shall be refunded to the taxpayer. For purposes of ORS chapters 305,
314, 315 and 316, refunds issued under this paragraph are refunds of an overpayment of tax imposed
under ORS chapter 316.
(g) The Department of Revenue may prescribe by rule the manner of calculating and claiming
a credit if the filing status of a taxpayer changes between the tax year for which a credit may be
claimed and the succeeding tax year.
(6) A refund may not be made under this section to a taxpayer if the amount of the refund is
less than $1.
(7) Not later than November 15 following the end of the biennium, the Department of Revenue
shall provide information and guidance to taxpayers relating to the calculation of the credit.The
department may make the information and guidance available electronically or otherwise.
(8) The Department of Revenue may adopt rules specifying the manner for issuing refunds under
[3] A-Eng. HB 3360
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this section to taxpayers who filed returns for the tax year on which the credit is computed but who
are not required to file returns for the year in which the credit could be claimed.
SECTION 4. The amendments to ORS 291.345, 291.349 and 327.330 by sections 1, 2 and 3
of this 2025 Act apply to biennia ending on or after June 30, 2027.
SECTION 5. This 2025 Act does not take effect unless the amendment to the Oregon
Constitution proposed by House Joint Resolution 13 (2025) is approved by the people at the
next regular general election held in November 2026. This 2025 Act takes effect on the ef-
fective date of that constitutional amendment.
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