HB 3914
Creates an Oregon personal income tax subtraction for tips received by the taxpayer during the tax year.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill creates a new subtraction on Oregon income tax returns for tips received by taxpayers. Specifically, it allows individuals to deduct the amount of tips reported as wages on their federal income tax returns. This change will apply to tax years beginning on or after January 1, 2026, and before January 1, 2032. The bill also specifies that the subtraction is effective 91 days after the end of the 2025 legislative session.
Key provisions
- Allows taxpayers to deduct reported tips from their Oregon income tax.
- The deduction applies to tips reported as wages on the federal income tax return.
- The change applies to tax years beginning on or after January 1, 2026.
- The deduction is available for tax years ending before January 1, 2032.
- The subtraction is effective 91 days after the adjournment sine die of the 2025 legislative session.
Who is affected
- Taxpayers in Oregon
- Individuals who receive tips as wages
Notable changes
- Introduces a new deduction for tips on the Oregon income tax form.
- Aligns Oregon tax law with federal reporting practices for tips.
Sponsors
Official sponsors from legislative records.
Primary sponsors
E. Werner Reschke
Gregory Smith
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