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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 1084
Sponsored by Senator ANDERSON
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 as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act makes a new tax on returns from investments of state universities. (Flesch
Readability Score: 63.4).
Imposes excise tax on net investment income of public universities. Directs revenues to Fund for
StudentSuccess.
Applies to tax years beginning on or after January 1, 2026.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to a tax imposed on university endowments; creating new provisions; amending ORS
327.001; prescribing an effective date; and providing for revenue raising that requires approval
by a three-fifths majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) As used in sections 1 to 4 of this 2025 Act:
(a) “Public university” means any university listed in ORS 352.002 or the Oregon Health
and Science University.
(b) “Related organization” has the meaning given that term in section 4968 of the Inter-
nal Revenue Code.
(2)(a) An excise tax shall be imposed on each public university and related organization
at the rate of five percent of the net investment income received by the public university
during the tax year.
(b) The net investment income of a public university shall be determined as provided in
section 4940(c) of the Internal Revenue Code.
SECTION 2.(1) Each public university subject to the tax imposed under section 1 of this
2025 Act shall:
(a) No later than the last day of January each year, provide the Department of Revenue
with an annual statement specifying the net investment income received by the public uni-
versity during the preceding tax year, and pay to the department the tax imposed under
section 1 of this 2025 Act.
(b) Maintain records relating to the assets and net investment income of the public uni-
versity and any related organization, for examination by the department for the purpose of
verifying the net investment income of the public university received during the preceding
taxyear.
(2) The department may collect a penalty for a delinquent payment of the tax imposed
under section 1 of this 2025 Act if a public university has failed to make full payment before
the 60th day after the payment is due. All penalties collected under this subsection shall be
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.
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deposited into a miscellaneous receipts account and credited to the Fund for Student Success
established under ORS 327.001.
SECTION 3. (1) The Department of Revenue shall deposit all revenue collected from the
excise tax imposed under section 1 of this 2025 Act in a suspense account established under
ORS 293.445 for the purposes of receiving the tax revenue. The department may pay expenses
for the administration and enforcement of the tax out of moneys received from the excise
tax. Amounts necessary to pay administrative and enforcement expenses are continuously
appropriated to the department from the suspense account.
(2) After payment of administrative and enforcement expenses under subsection (1) of
this section and refunds or credits arising from erroneous overpayments, the department
shall transfer the balance of the moneys received from the excise tax to the Fund for Stu-
dent Success established under ORS 327.001.
SECTION 4.Unless the context requires otherwise, the provisions of ORS chapters 305,
314 and 316 governing the audit and examination of reports and returns, confidentiality of
reports and returns, determination of deficiencies, assessments, claims for refunds, penal-
ties, interest, jeopardy assessments, warrants, conferences and appeals to the Oregon Tax
Court, and related procedures, apply to the tax imposed under section 1 of this 2025 Act as
if the excise tax on investment income were a tax imposed upon or measured by net income.
The provisions apply to the public university liable for the tax and the public university is
considered a taxpayer.
SECTION 5. ORS 327.001, as amended by section 28, chapter 52, Oregon Laws 2024, is amended
toread:
327.001. (1) The Fund for Student Success is established in the State Treasury, separate and
distinct from the General Fund.
(2) The Fund for Student Success shall consist of moneys appropriated by the Legislative As-
sembly, moneys transferred to the fund under ORS 317A.155 and under sections 2 and 3 of this
2025 Act and moneys received as provided in subsection (3) of this section.
(3) The Department of Education, on behalf of the State of Oregon, may solicit and accept gifts,
grants, donations and other moneys from public and private sources for the Fund for Student Suc-
cess. Moneys received as provided in this subsection shall be deposited into the Fund for Student
Success.
(4) Moneys in the Fund for Student Success are continuously appropriated to the department for:
(a) Transfer for each biennium to the State School Fund in the amount calculated by the division
of the Oregon Department of Administrative Services that serves as office of economic analysis to
be the sum of:
(A) At least $40 million, for the purpose of a transfer under ORS 327.008 (10) to the High Cost
Disabilities Account established in ORS 327.348; and
(B) The amount of change in General Fund revenue to be collected in the biennium due to the
amendments to ORS 316.037 by section 56, chapter 122, Oregon Laws 2019, and the operation of ORS
317A.100 to 317A.158.
(b) Retention as a reserve for cash flow and revenue shortfall purposes.
(c) Of the amount in the Fund for Student Success that is not dedicated for transfer as pre-
scribed by paragraph (a) of this subsection or retained under paragraph (b) of this subsection,
transfer to other education accounts as follows:
(A) At least 50 percent to the Student Investment Account established in ORS 327.175.
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(B) Up to 30 percent to the Statewide Education Initiatives Account established in ORS 327.250.
(C) At least 20 percent to the Early Learning Account established in ORS 327.269.
(5) The department shall make the transfers prescribed by subsection (4) of this section on a
periodic basis. The transfers must be in amounts that, based on the most recent data available to
the department, ensure that the amounts and percentages identified in subsection (4) of this section
are satisfied by the end of the biennium.
SECTION 6. (1) Sections 1 to 4 of this 2025 Act apply to tax years beginning on or after
January 1, 2026.
(2) The amendments to ORS 327.001 by section 5 of this 2025 Act apply to moneys received
by the Department of Revenue on or after January 1, 2026.
SECTION 7.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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