By Taxpayers Association of Oregon
HB 3010 limits Oregonian’s mortgage interest deduction from January 1, 2024 to January 1, 2028.
Under the bill, fifty percent of the estimated revenue increase due to lowering the mortgage interest deduction will be dedicated to the Oregon First-Time Home Buyer Account. The First-Time Home Buyer Account will fund a credit against Oregon personal income taxes for a percentage of the purchase price of a home purchased by first-time home buyer.
The bill also establishes a Task Force on First-Time Ownership, and requires the task force to report recommendations to the interim committee of Legislative Assembly related to revenue on or before September 15, 2024.
How much of the deduction will be eliminated, and how much will the first time buyer credit be? Both amounts are blank in HB 3010.
Previously the Oregon Secretary of State, Shemia Fagan, issued a report effectively highlighting that the Mortgage Interest Deduction deprives lawmakers of $1 billion in tax revenue and that the deduction has no real value for property owners. We think many property owners would say the opposite.
Furthermore, how much more ill Oregon’s affordable housing get worse if you add back $1 billion in higher housing costs?