The “close of session” economic and revenue forecast released in late August by the Office of Economic Analysis confirmed that personal income tax revenues for the 2005-07 budget cycle exceeded the 2005 close of session forecast by 2 percent or more.1 Under Oregon law, the Department of Revenue will send – or “kick back” – the entire amount of unanticipated personal income tax revenue by December 15, 2007. The legislature chose not to redirect the unanticipated funds, known as “the kicker,” to a reserve account or toward investments in public structures.2
The close of session forecast certified that the personal income tax kicker will total almost $1.1 billion ($1,071,200,000). Taxpayers will get checks equal to 18.6 percent of their 2006 state income tax liability.
