House of Representatives                     P.O. Box 40600

Office of Program Research            Olympia WA 98504-0600

Finance Committee                        Phone 360-786-7100

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HB 4405

Bill Analysis

March 4, 1999

Brief Description: Creating a joint select committee on taxation by Oregon.

Bill Sponsors: Representatives Dunn, Boldt, Carlson and Sump.

          Brief Summary of Bill

CCreates a joint select committee to review the tax burden of Washington residents who work in Oregon.

Staff: Rick Peterson, 786-7150.

Background: 

Oregon imposes a personal income tax to finance state government.  Personal income taxes make up about 85 percent of Oregon's state general fund.

Oregon's income tax applies to all the income of residents.  Oregon also taxes nonresidents on income from Oregon sources.  For the 1995 tax year, 68,000 Washington residents filed Oregon income tax returns.  They paid an average of $1,500 in Oregon personal income tax.  Washington residents paid a total of $102 million in Oregon personal income tax.  This represented 3.7 percent of all Oregon personal income taxes.

Summary of Bill:

A joint select committee is created to review the tax burden of Washington residents who work in Oregon as compared to other Washington and Oregon residents.  The committee will review the cost of services provided Washington residents by Oregon and constitutional questions regarding the taxation of Washington residents by Oregon.  The committee will consist of four Senators and four Representatives from districts bordering Oregon.

Appropriation:  None.

Fiscal Note:  Not requested.