Personal, corporate tax collections exceed Oregon forecasts
SALEM, Ore. (AP) — Personal and corporate income tax collections were higher than forecast as job growth remained strong in Oregon, state economists said on Wednesday.
All industries are expected to grow this year and next, with construction, professional and business services and leisure-hospitality leading the way, state economists said Wednesday. Construction jobs grew by 9 percent in the 2018 fiscal year and were expected to grow another 4 percent in FY 2019.
“The housing market’s revived; the construction numbers continue to come in above our expectation,” senior economist Josh Lehner told the House Interim Committee On Revenue.
Second quarter personal income tax collections were up $85.7 million from the June forecast. Personal income taxes make up 85 to 90 percent of the state’s general fund, Lehner said.
Second quarter corporate income tax collections were up $21.4 million from the June forecast.
A personal “kicker” tax refund of $686 million is projected to go out in the first half of 2020. It’s the second-largest in the state’s history, but because the population has grown, the kickers per capita are expected to be on par with what typical kicker size would be, Lehner said.
The average payment to taxpayers is projected to be $336. Those in the highest adjusted grow income bracket of $401,200 and above can expect $6,787. Those earning $26,300 to $47,800 per year can expect $169. The kickers are returned in the form of credits.
A total corporate kicker of $208 million is expected, also the largest in dollar terms seen in more than a decade.