Oregon HB 4038: Relating to employer taxes; prescribing an effective date.

Bill Text

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82nd OREGON LEGISLATIVE ASSEMBLY--2024 Regular Session
House Bill 4038
Sponsored by Representative WRIGHT (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act would give a credit against taxes to employers whose rate for 2025 is less than
their rate for the year before. (Flesch Readability Score: 65.7).
Provides a credit against an employer’s 2025 unemployment insurance taxes if the employer’s tax
rate for 2025 is less than the employer’s tax rate for 2022, 2023 and 2024 as determined in accord-
ance with Enrolled House Bill 3389 (2021).
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to employer taxes; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2024 Act is added to and made a part of ORS chapter 657.
SECTION 2. (1)(a) Any employer whose tax rate for calendar year 2025 is less than the
employer’s tax rate for calendar year 2024 shall receive a nonrefundable credit against the
taxes due from the employer for calendar year 2025 according to the schedule set forth in
subsection (2) of this section.
(b) This section does not apply to an employer who did not have a tax rate determined
in accordance with ORS 657.430, 657.435 or 657.480 for calendar year 2022.
(2) If the decrease in the tax rate described in subsection (1) of this section was:
(a) At least 0.5 percentage points and not more than 1.0 percentage point, 25 percent of
the taxes due from the employer for calendar year 2025 shall be credited.
(b) More than 1.0 percentage point and not more than 1.5 percentage points, 50 percent
of the taxes due from the employer for calendar year 2025 shall be credited.
(c) More than 1.5 percentage points and not more than 2.0 percentage points, 75 percent
of the taxes due from the employer for calendar year 2025 shall be credited.
(d) More than 2.0 percentage points, 100 percent of the taxes due from the employer for
calendar year 2025 shall be credited.
(3) An employer is not eligible for the credit against taxes under this section unless the
employer:
(a) Files all wage reports due under ORS 657.571 for calendar years 2024 and 2025 in a
timely manner;
(b) Pays all tax liabilities imposed under this chapter for calendar years 2024 and 2025 in
a timely manner; and
(c) As of January 1, 2025:
(A) Had paid all outstanding unemployment insurance taxes and related liabilities; or
(B) Had paid all outstanding amounts due according to the terms of a payment plan ac-
NOTE: Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 57

HB 4038
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cepted by the Director of the Employment Department for repayment of all outstanding
amounts described in subparagraph (A) of this paragraph.
SECTION 3. Section 2 of this 2024 Act is repealed on January 2, 2028.
SECTION 4. This 2024 Act takes effect on the 91st day after the date on which the 2024
regular session of the Eighty-second Legislative Assembly adjourns sine die.
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