(hearing) SB 1507 is $400M backdoor tax on businesses, car owners

By Taxpayers Association of Oregon
OregonWatchdog.com

Don’t raise $400 million in higher taxes with SB 1507.

Senate Bill 1507 (-4,-5 amendments) aims to snatch nearly $400 million in tax breaks from the 2025 Congress Tax Cuts in the Big Beautiful Bill by disconnecting from the state savings from the car interest deduction and the business depreciation deduction.

Last year, nine states cut their income taxes.

As states cut their taxes, Oregon is raising the tax burden by passing higher taxes and fees.  This is a path to tax revenue decline.

Businesses often rate their number one priority in savings is to deduct expensive new investments immediately and not slow rolling the savings over many years.

Our CPA Chair, Hon. Tom Butler, shared this warning over the bill’s impact of splitting depreciation reporting; “Oregon has previously disconnected from federal tax law regarding accelerated depreciation.  It became the Tax Preparers Full Employment Act!  It requires businesses to file separate Oregon depreciation schedules for the life and holding periods of new assets.  In some cases, we’re talking about thousands of assets with multiple Oregon depreciation adjustments.   When those assets are eventually sold or abandoned, additional reconciliations are required.  In addition to discouraging capital investment in Oregon, the Oregon DOR’s administration of these adjustments can be extremely costly.”

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