SALEM, Ore. -- State economists announced Wednesday that increasing state revenues likely will trigger Oregon’s “kicker” tax refund for the 2017-19 biennium. But what exactly does that mean? Here are some answers:
What is the kicker?
Unique to Oregon, the kicker is technically a tax surplus credit, triggered when revenue for a two-year budget period exceeds projections by at least 2 percent.
Voters approved a ballot measure creating both a personal and corporate tax kicker in 1980.
In 2000, they voted to enter the kicker into the Oregon Constitution so lawmakers can’t suspend it and keep the money, something that happened twice in the early 1990s.
And in 2012, voters approved a measure that sends the corporate kicker back to the state to provide additional funding for public schools, rather than returning the money to Oregon businesses.
How much will I get?
The kicker isn’t certain until the final numbers are in. That will happen during the last revenue forecast for the biennium, in August 2019.
The current forecast calls for about $555 million to go back to taxpayers and $152 million to go to schools. State economist Mark McMullen said he's in the process of estimating what that will mean for the average taxpayer.
In 2017, when the personal kicker totaled $464 million, the average refund was $227.
When will I get my check?
Oregon stopped mailing kicker checks in 2011. Instead, you will get a credit on your 2019 tax return, which you file in 2020. You’ll only get the credit if you paid taxes the previous year.
Where does the money come from?
Money for the personal kicker comes from all General Fund revenue sources except for corporate tax revenues.
Why is the kicker so controversial?
Opponents say the kicker contributes to Oregon’s roller-coaster budget cycles because it prevents the state from building reserves, commonly called rainy day funds, to use during economic downturns.
Over the years, the Legislature has floated several bills to eliminate or change the kicker, but none has passed. But some lawmakers are vowing to overhaul Oregon’s revenue system during the 2019 Legislative session.
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