Chapter § 14.3

• Jurisdiction: Oregon

§ 14.3 THE KICKER

In 2000, the voters adopted House Joint Resolution (HJR) 17 (1999), which placed the "kicker" into the Oregon Constitution as Article IX, section 14. Previously, the kicker had been purely statutory. See Bobo, 338 Or at 116 n 7. The essence of the kicker is that if actual General Fund revenues in a given biennium exceed those projected by the legislature by 2 percent or more, the state must refund the excess to the taxpayers. The kicker differentiates between corporate and individual tax receipts. If General Fund revenue from corporate income and excise taxes exceeds projected revenues from those sources by 2 percent or more, "the total amount of the excess shall be retained in the General Fund and used to provide additional funding for public education, kindergarten through twelfth grade." Or Const, Art IX, § 14(3). If General Fund revenue from all sources other than corporate income and excise taxes exceeds projected revenues from those sources by 2 percent or more, "the total amount of the excess shall be returned to personal income taxpayers." Or Const, Art IX, § 14(4).

The legislature may provide for refunds to be made by tax credits, refund payments, or other methods. Or Const, Art IX, § 14(5)(a). It may reduce the refunds to the extent of "administrative costs associated with returning the excess revenues." Or Const, Art IX, § 14(5)(b). It may choose not to return excess revenues to a "taxpayer if the taxpayer's share is less than a de minimis amount identified by the [legislature]." Or Const, Art IX, § 14(5)(c). And it may offset a taxpayer's share of the excess revenues "by any liability of the taxpayer for which the state is authorized to undertake collection efforts." Or Const, Art IX, § 14(5)(d).

During the biennium for which the projected revenues have been made, notwithstanding Article IX, section...