HB 4016
Requires public contractors to demonstrate and maintain tax compliance, through a certification process, as a condition of the execution of a public contract.
Jurisdiction
Oregon
Session
2026 Regular Session
At the request of
(at the request of House Interim Committee on Revenue for Representative Nancy Nathanson)
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Sign in to take actionPublic sentiment
Support
75%
Oppose
25%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill requires public contractors in Oregon to demonstrate and maintain tax compliance as a condition of receiving public contracts. It establishes a certification process overseen by the Department of Revenue, ensuring contractors adhere to state and local tax laws. The bill also directs the Secretary of State to study methods for improving tax compliance through the business registry function. The law takes effect on January 1, 2027.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsor
House Interim Committee on Revenue
Arguments in favor
Reasons to support this legislation.
The supporters of the legislation emphasize its long-overdue passage, citing past failures of similar legislation. They also highlight the pressing need for improved tax compliance among state contractors, particularly large ones that routinely delinquently pay taxes owed by Oregon citizens and companies. Furthermore, proponents argue that public contractors should be required to demonstrate and maintain tax compliance as a condition of executing a public contract, thereby preventing cheating the system and ensuring accountability. By prioritizing transparency and fairness, supporters believe this legislation can help restore trust in government contracting practices.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of HB 4016 argue that the proposed legislation would impose significant costs on contractors, who would be required to verify their compliance with state tax obligations. This added burden is expected to complicate the state's public contracting process, potentially deterring businesses from participating in government projects and increasing costs for taxpayers. Proponents of this position claim that the current system is already effective in ensuring compliance, and that the proposed requirement would serve as an unnecessary administrative hurdle.
Source: Testimony Summaries
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