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Oregon Lawmakers Pass Bill Rolling Back Trump Tax Breaks as Republicans Push for a Statewide Vote Politics & Elections Top Stories By Lucille McNamara On Feb 27, 2026 FILE - Oregon State Capitol - October 2024 - Salem, Oregon | Photo by Seth Smigelski Oregon lawmakers this week passed Senate Bill 1507, which eliminates three tax exemptions contained in President Donald Trump’s One Big Beautiful Bill Act (OBBBA). However, the future of the legislation – if ratified by Governor Tina Kotek within the next five days – is not guaranteed as Republican opponents plan to take it to a public vote. Federal spending and taxes contained in the OBBBA are automatically adopted into Oregon’s fiscal system, but the introduction of Senate Bill 1507 by chief sponsor, Rep. Nancy Nathanson, D-Eugene, reverses three federal tax concessions that will direct $311 million in tax revenue into education and other essential services. SB 1507 excludes: Concessions to private equity firms and venture capitalists for expanded, tax-advantaged investment opportunities. The accelerated 100% depreciation for business equipment and machinery. Eliminating a $10,000 write-off for new cars assembled in the U.S. and purchased in 2025. Tidings Data Snapshot SB 1507 / estimated revenue drivers Bar widths use a square root scale so smaller items stay visible Revenue increases Bonus depreciation disconnect : plus $267.0M Small business stock exclusion disconnect : plus $38.9M Vehicle write off disconnect : plus $36.4M Offsets from credits Oregon EITC expansion : minus $26.2M Job creation credit : minus $4.6M Source: Oregon Legislative Revenue Office / Revenue Impact Statement for SB 1507 A Dailytidings.com Despite a majority vote, the bill was criticized by several Republican lawmakers, who are going to pursue a public vote. Ed Diehl, R-Stayton, argues that voters, and not lawmakers, should decide on any changes. They also argue that lawmakers are using changes to federal policy to justify increased state revenues. Supporters of a referendum will have 90 days to gather signatures to qualify for the ballot, as stipulated under Oregon law. If they are successful, SB 1507 will be suspended until public voting in a statewide election. Here is the checklist if opponents try to force SB 1507 to a statewide vote: Requirement What it means Signature threshold Valid signatures equal to 4% of votes cast for governor at the last election / current minimum published as 78,116 Filing window Signature sheets must be submitted no later than 90 days after the Legislature adjourns sine die Verification Elections Division verifies signatures / if the threshold is met, the measure goes on the ballot Effect on the law Once qualified, the targeted sections are suspended until voters decide Where to start File a referendum petition with the Oregon Secretary of State Elections Division and follow the state initiative and referendum manual The Bill Must Now Be Ratified by the Governor SB 1507 now goes to the desk of Governor Tina Kotek, who has five days to sign it into into law. If enacted, the changes will become effective this tax year. However, these losses are offset by significant tax credits to more than 200,00 low-income households, as well as a no tax policy on overtime and tips. Governor Kotek has indicated that SB 1507 will stabilize the state budget and that by disconnecting from certain OBBBA clauses, funding will be maintained to schools, universities, and community colleges. Proponents of the bill believe it will provide Oregon with a stronger economic base and maintain essential services. Share Twitter Facebook ReddIt WhatsApp Pinterest Email