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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 399
Sponsored by Senator GIROD (Presession filed.)
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 requires DOR to make kicker refunds in the form of a check. (Flesch Read-
ability Score: 89.8).
Requires the Department of Revenue to make surplus revenue refunds, known as “kicker” re-
funds, in the form of a check.
Applies to surplus revenue refunds issued for biennia beginning on or after July 1, 2025.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to payment of surplus revenue refunds in form of check; creating new provisions; amending
ORS 291.349 and 291.351; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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
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 1634 SB399
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ORS 291.345, to provide additional funding for public education, 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] refunded to personal income tax-
payers 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] refunds described under
this subsection. The excess amount to be [credited shall be credited] refunded shall be paidto per-
sonal income taxpayers in a percentage amount of prior year personal income tax liability as de-
termined under subsection (5) of this section.
(5)(a) If there is an excess to be [credited under subsection (4) of] refunded under this section,
on or before [November 1] September 15, following the end of each biennium, the Oregon Depart-
ment of Administrative Services shall determine and certify to the Department of Revenue the per-
centage amounts of [credit for purposes of subsection (4)] refund payment for purposes 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] refunded to personal 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] refund under this section is de-
termined 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] refunded to the taxpayer.
(d) The [credit] refund shall be determined based on the tax liability as shown on the return of
the taxpayer 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 pay-
ments, 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 de-
partment 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
[2] SB399
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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.]
(7)(a) The refund described under this section shall be mailed by the Department of Re-
venue to personal income taxpayers eligible for the payment on or before December 15 fol-
lowing the end of the biennium for which the payment described under this subsection is
beingmade.
(b) Notwithstanding paragraph (a) of this subsection, the department shall mail the re-
fund at the earliest date of practicable convenience in the case of a return that is first filed
on or after August 15 after the end of the biennium.
SECTION 2. ORS 291.351 is amended to read:
291.351. If, based on the report made under ORS 291.349 (2), an amount will be [credited] re-
funded to personal income taxpayers under ORS 291.349 (4), the Department of Revenue shall
certify the costs that are incurred in calculating and [administering the credits] providing the re-
fund checks under ORS 291.349 (4). The amount of the costs certified by the department under this
section may not exceed $250,000. Costs shall be certified by the department within 15 days of the
date the report under ORS 291.349 (2) is made. As used in this section, “costs” means and is limited
to those costs that, absent the requirement of providing [credits] refunds under ORS 291.349 (4),
would not be incurred by the department.
SECTION 3.(1) The amendments to ORS 291.349 and 291.351 by sections 1 and 2 of this
2025 Act apply to surplus revenue refunds issued for biennia beginning on or after July 1,
2025.
(2) ORS 305.792 applies to surplus revenue refunds issued for biennia ending on or before
June 30, 2025.
SECTION 4.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.
[3]