SALEM, Ore. (AP) — The latest load of bad budget news for Oregon state government held a shiny nugget for businesses — the prospect of a $40 million “kicker” tax rebate.
Companies slashed payrolls and overhead through the recession and are holding back spending in the anemic recovery. As a result, many are making good profits.
That’s showing up in Oregon state revenue. Corporate tax collections are ahead of projections made last year.
The kicker law grants rebates when state revenues are well ahead of expectations. Personal income, though, is down too far to qualify now.
Josh Harwood, a state economist, says corporate rebates would kick in next year if current trends continue. Businesses would be allowed to apply the rebates to future tax bills.
