Photo: M.O. Stevens / Wikimedia Commons, Public domain
Oregon is the only state with a rule that returns surplus income tax revenue to taxpayers when collections come in well above forecast. The kicker, as it is known, can be a few dollars or several hundred, and it arrives as a credit on the state tax return rather than as a separate check.
What triggers it
At the start of each two-year budget cycle, state economists forecast how much personal income tax Oregon will collect. If actual collections end up at least 2 percent above that forecast, the entire surplus goes back to taxpayers. The rule was put into the Oregon Constitution by voters in 2000. A separate corporate kicker now goes to K-12 schools instead of to businesses.
How much you get
The credit is figured as a percentage of your Oregon tax liability from the year before the credit is paid. If the kicker rate is, say, 10 percent, and your tax liability was $3,000, your credit would be $300. The Oregon Department of Revenue confirms the percentage each fall and posts a calculator on its website. The largest kicker on record was paid on 2023 returns, totaling about $5.6 billion statewide.
How to claim it
The kicker is claimed on the following year’s Oregon return. Tax software and preparers apply it automatically when it is in effect, and it either raises your refund or lowers what you owe. People who had a tax liability in the base year but do not normally need to file must still file a return to receive it. The state may apply the credit to debts it is owed, such as unpaid taxes.
Donating it
Taxpayers can choose to donate their kicker to the Oregon State School Fund instead. For other household costs on the coast, see our property tax guide.
Marnie Holcomb is the editor and publisher of Oregon Coast Daily News and covers Lincoln County government and community life.
