SALEM, Ore. — Improving employment will lead to a slight uptick in Oregon state revenue, which will inch closer to the threshold that would trigger “kicker” tax rebates for individuals, state economists said Wednesday.
Economists project the state will collect $55 million more than was expected three months ago, according to the quarterly revenue forecast delivered to state lawmakers. The increase is driven primarily by unexpectedly strong job growth, especially in the housing industry.
It was the third straight quarter showing a slight uptick in revenue.
“As a result, no emergency budget cuts or credit issues are going to arise here like we’re seeing in some of our other income-tax-dependent states,” said Mark McMullen, the state economist.
With more people working, combined with tax increases enacted during a special session last year, projected personal income tax collections were $74 million shy of triggering “kicker” tax rebates for individuals.