HB 2006 chips away at mortgage interest deduction

Lawmakers float property tax bill by removing mortgage interest deduction for non-owner occupied homes.

By Taxpayer Association of Oregon

House Bill 2006 is set for a hearing today in the House Human Services and Housing Committee.   House Bill 2006 would strip away the mortgage interest deduction for all non-owner occupied homes.   This would be a colossal tax on people with second homes and rental property.  Ironically, politicians wish to make life more affordable for renters while simultaneously skyrocketing the property taxes of the rental property.    It is a tax death spiral and a compounding of thoughtless short sighted policy making.

Once again, the bill’s sponsor is anonymous.  No one knows who it is and is hiding behind a wall of anonymity.

Here is the bill summary for House Bill 2006

“Disallows, for purposes of personal income taxation, mortgage interest deduction for residence other than taxpayer’s principal residence. Disallows deduction for interest for principal residence based upon income thresholds. Limits deduction for taxpayers below income thresholds.  Transfers amount equal to estimated increase in revenue attributable to restrictions on deduction of mortgage interest to accounts in Oregon Housing Fund.  Applies to tax years beginning on or after January 1, 2017. Takes effect on 91st day following adjournment sine die.”

Here is the full text for House Bull 2006

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Posted by at 04:55 | Posted in Uncategorized | 2 Comments |Email This Post Email This Post |Print This Post Print This Post
  • DonnaLC

    ” This would be a colossal tax on people with second homes and rental property.” Wrong. Mortgage interest for rental property is a business expense and not listed on Schedule A of the fed return [which is where the Oregon interest info comes from]. If Oregon Catalyst can’t get that clear it’s hard to have much respect for its opinion on this bill.

  • DonnaLC

    Exactly. Which makes the situation fair. Why should taxpayers subsidize your vacation home?

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