Taxpayer Association of Oregon
The Oregon Senate Housing & Development committee will be hearing SB 852 on Thursday which strips away mortgage interest deductions for secondary property. Much of secondary homes are often rental properties, so SB 852 would tax these rental properties which are currently hemorrhaging financial losses due to non-paying renters. The money raised by overtaxing these properties would be used to create a fund to help other property owners. Apparently, Oregon which is the nation’s 5th fattest most expensive government (per-capita) cannot find any money to help property owners except to tax them more.
SB 852 reads, “Disallows, for purposes of personal income taxation, mortgage interest deduction for residence other than taxpayer’s principal residence, unless taxpayer sells residence or actively markets residence for sale. Phases out allowable deduction for interest for principal residence based upon income. Disallows deduction for principal residence above threshold income amount.Establishes Oregon Housing Opportunity Account. Transfers amount equal to estimated increase in revenue attributable to restrictions on deduction of mortgage interest to account.”