Budget & Taxes

Establishes and modifies certain biennial appropriations made from the General Fund to specified state agencies and the Emergency Board. Establishes and modifies limitations on expenditures for certain biennial expenses for specified state agencies. Declares an emergency, effective on passage.

[ Declares that it is the goal of the Legislative Assembly to fund the Department of Veterans' Affairs in an amount that is not less than $10,000,000, from the General Fund, in 2015 dollars, adjusted for inflation. ] [ Requires the Director of Veterans' Affairs to add additional full-time positions within the department. Creates in the department the position of Veterans Employment Coordinator. ] Requires the director to be a veteran who has received a discharge or release under other than dishonorable conditions. Allows the director to appoint a deputy director, subject to approval by the Governor. Directs the department to develop and implement a grant program for suicide prevention and workforce training and preparation. Allows moneys in the Veterans' Services Fund to be used for the grant program. Increases an expenditure limitation for the purpose of the grant program. Directs the director to distribute moneys appropriated for county veterans' service officer programs on a quarterly basis. Directs the department to provide a report on the quarterly distribution process. Changes who are allowed to request county veteran discharge records. Increases, from $5,000 to $10,000, the cap on the individual grant amount that is allowed under the Veteran Educational Bridge Grant Program. Directs the Judicial Department, in consultation with the Oregon Criminal Justice Commission, to study methods for providing access to veterans' treatment courts to residents of each county or judicial district. Takes effect on July 1, 2026.

Updates the terminology used to describe certain income earned by multinational corporations to reflect a change in the term used in federal law. Aligns sunset dates for earned income tax credit provisions with the underlying sunset date for the credit. Expands the tax credit for certified film production development contributions to allow the use of contributions for the production of commercials. Applies to fiscal years beginning on or after July 1, 2026. [ Provides an exception from the annual filing requirement for the property tax exemption for property burdened by an affordable housing covenant used for owner-occupied housing. Applies to property tax years beginning on or after July 1, 2027. ] Extends the sunset for the property tax exemption for cargo containers. Repeals the requirement that revenue from a tribal tax on the distribution of motor vehicle fuel that is exempt from the gas taxes under Oregon law is subject to the highway-use restrictions under the Oregon Constitution. Extends the applicability of the pass-through business alternative income tax and tax credit through the 2027 tax year. Allows overpayments to be credited as estimated payments for the next tax year. Requires the State Board of Tax Practitioners to register as enrolled agents individuals who are authorized by the Internal Revenue Service to represent taxpayers as enrolled agents. Takes effect on the 91st day following adjournment sine die.

Provides that additional taxes otherwise imposed upon disqualification of land from certain forestland special assessment programs may not be collected if the disqualification is due to the suspension of reforestation requirements as a result of insects or disease. Authorizes the Water Resources Department to grant time extensions for specified water right permit holders to complete construction and apply water beneficially. Modifies requirement that the department's director or principal assistant be a registered engineer. Modifies provision specifying when a proposed order of the department becomes final. Directs the department to facilitate certain water users' enrollment in a federal conservation program. Takes effect on the 91st day following adjournment sine die.

Oregon's legislature is requesting Congress permanently extend federal tax relief for wildfire victims, which expired at the end of 2025. This follows Oregon's 2024 state law (SB 1520) that provided tax relief for wildfire recovery, but required federal companion relief to prevent liability settlements from being taxed. The memorial specifically urges Congress to make permanent the temporary federal tax cuts established by H.R. 5863 (Federal Disaster Tax Relief Act of 2023). This applies to wildfire victims in Oregon who faced federal taxation on recovery funds after recent catastrophic fires.