The surplus "kicker law", enacted in 1979, provided for the return of, or a credit on, personal and corporate/excise taxes when collections exceeded projected revenues by at least two percent. The 1979 law applied to the biennium beginning July 1, 1979 only, unless approved by the voters at the 1980 primary election. On May 20, 1980, the voters approved continuance of the "tax reduction program" by a vote of 636,565 to 64,979.
Under the "kicker law", state economists issue a forecast at the end
of every legislative session projecting what they think income tax collections
will be in the coming two-year budget period. If actual revenue exceeds
2 percent more than the forecast, the extra tax collected, including the
2 percent, must be refunded. Individual and corporate/excise kicker dollars
are calculated
separately.
This kicker refund has been triggered seven times since 1981, returning a total of $1.2 billion in personal income tax and $426 million in corporate/excise tax. The Legislature kept the personal kicker dollars in 1989-91 and the corporate/excise kicker dollars in 1991-93 to balance the budget.
NEW TAXPAYER PROTECTIONS
Current law requires a three-fifths vote in each house of the Legislative
Assembly to keep the kicker dollars. Ballot Measure 86 amends Oregon's
Constitution to require an increase to a 2/3 vote in each house of the
Legislative Assembly to keep the kicker
dollars.
The "kicker law" is a statute. Like any other statute, it can be amended
or repealed by the legislature. Ballot Measure 86 would assure that the
"kicker law" could only be amended or repealed by a vote of the people.
| Committee Members:
Senator Bill Fisher Representative Tim Knopp Representative Jackie Winters |
Appointed By:
President of the Senate Speaker of the House Speaker of the House |
(This Joint Legislative Committee was appointed to provide the legislative
argument in support of the ballot measure pursuant to ORS 251.245.)