PORTLAND, Ore. (AP) — Federal stimulus payments last year during the COVID pandemic will will generate $112 million in additional Oregon taxes because of a quirk in state tax law and mean many people are on the hook for a higher tax bill.
The Oregonian/OregonLive reports the taxes will affect 877,000 Oregonian taxpayers, about half of all those who received federal stimulus payments in 2020 and early in 2021.
They would owe an average of about $130 apiece from just the first stimulus payments last spring; many lower income workers would owe $100 or more.
Lawmakers from both parties say that’s unfair, and the Legislature is examining a fix that would wipe out the higher tax bill.
But with the April tax filing date approaching it’s not clear there’s consensus to make a change.