Measure 59

Explanatory Statement

Ballot Measure 59 removes from statute the limitation on the amount of federal taxes that individual income taxpayers can deduct in computing Oregon taxable income. Under this measure, federal income taxes would be fully deductible on all individual taxpayers' state income tax returns beginning January 1, 2010.

Under current law, in tax year 2008, Oregonians who owe state income taxes may deduct up to $5,600 of their federal income tax liability on their state income tax return. Currently, a deduction is not allowed for any amount of federal income taxes that is in excess of $5,600 in tax year 2008. Today, most people pay less than $5,600 in federal income taxes and therefore receive the full deduction for federal income taxes paid.

This measure also would require local governments or other taxing districts with an income tax to allow an unlimited income tax deduction for federal income tax payments.

The measure does not apply to corporate excise or income taxes.

Ballot Measure 59 reduces state General Fund revenues available for general government programs and services. The measure does not provide any replacement funding for this revenue reduction.

Committee Members: Appointed by:
Bill Sizemore Chief Petitioners
R. Russell Walker Chief Petitioners
Mike Leachman Secretary of State
Laurie Wimmer Whelan Secretary of State
Jack Roberts Members of the Committee

(This committee was appointed to provide an impartial explanation of the ballot measure pursuant to ORS 251.215.)