HOUSE BILL REPORT

SJM 8008

As Reported by House Committee On:

Finance

Brief Description:  Requesting a joint Oregon‑Washington committee on taxation be established.

Sponsors:  By Senators Benton and Carlson.

Brief History:

Committee Activity:

Finance:  3/29/01 [DP].

  Brief Summary of Bill

$Establishes a joint committee on taxation, consisting of an equal number of legislators from Oregon and Washington, to study the issue of tax fairness.

HOUSE COMMITTEE ON FINANCE

Majority Report:  Do pass. Signed by 9 members: Representatives Cairnes, Republican Co‑Chair; Morris, Democratic Co‑Chair; Berkey, Democratic Vice Chair; Roach, Republican Vice Chair; Carrell, Conway, Santos, Van Luven and Veloria.

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 general fund.

Oregon's income tax applies to all the income of residents.  Oregon also taxes nonresidents on income from Oregon sources.  For the 1998 tax year, Washington residents filed 79,461 Oregon income tax returns.  They paid an average of $1,655 in Oregon personal income tax.  Washington residents paid a total of $130 million in Oregon personal income tax.  This represented 3.8 percent of all Oregon personal income taxes.

Summary of  Bill:

A request is made to Oregon to establish a joint committee on taxation, consisting of an equal number of legislators from Washington and Oregon, to study the issue of tax fairness for residents residing in one state who are employed, conduct business, or make purchases in the other state.

Appropriation:  None.

Fiscal Note:  Not Requested.

Testimony For:  None.

Testimony Against:  None.

Testified:  None.