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Oregon Democrats mull options as time runs out to divorce state tax code from GOP cuts
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Oregon Capital Chronicle
Democrats say they are discussing their options for temporarily or partially suspending the state’s “rolling reconnect” policy that has, since 1997, automatically rolled federal changes to income tax code into state income tax policy.
That said, disconnecting for tax years 2026 and later are administratively feasible.”A bill proposed earlier this year by Rep. Nancy Nathanson, D-Eugene, would have preemptively split Oregon from federal tax code changes before the federal law passed.
Previous disconnect faced shorter timelineIf the Legislature votes to untangle Oregon’s state tax code from the federal changes, it would not be the first time.
They didn’t disconnect the state from the full tax changes, but from deductions on qualified business income.
While they’ll get the federal benefit, they won’t receive the state benefit for no tax on tips, and no tax on overtime,” he said.
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