 Components of House Bill 2152
See House Bill 2152 in its entirety.
INCOME TAX SURCHARGE
The graduated income tax surcharge is retroactive back to January 1, 2003. Since none of the increases have been withheld from paychecks throughout 2003, taxpayers will be forced to pay one lump sum on April 15th
the entire year's worth of increased taxes.
Surcharge rates are based on adjusted gross income and will affect both individuals and small businesses. This increase will raise over $850 million an outrageous amount of money for families and businesses that are already facing strained times.
Surcharge Rates:
| Single Filers |
Rate |
Joint Filers |
| Less than $10,000 |
0% |
Less than $20,000 |
| $10,000 - $20,000 |
1% |
$20,000 $40,000 |
| $20,000 - $25,000 |
2% |
$40,000 $50,000 |
| $25,000 - $30,000 |
3% |
$50,000 $60,000 |
| $30,000 - $35,000 |
4% |
$60,000 $70,000 |
| $35,000 - $50,000 |
5% |
$70,000 $100,000 |
| $50,000 - $70,000 |
6% |
$100,000 $140,000 |
| $70,000 - $90,000 |
7% |
$140,000 $180,000 |
| $90,000 - $120,000 |
8% |
$180,000 $240,000 |
| More than $120,000 |
9% |
More than $240,000 |
SENIOR MEDICAL DEDUCTIONS
Currently, Oregon senior citizens can deduct all of their medical expenses from their state taxes. House Bill 2152 not only increases the qualifying age from 62-65 over the next three years, it reduces the maximum amount of medical expenses seniors would now be able to deduct by the following rates:
| Income |
Reduction of Allowable Deduction |
| $15,000-$30,000 |
60% - deductions of only 40% allowed |
| $30,000 $40,000 |
80%deductions of only 20% allowed |
| $40,000-$50,000 |
90%deductions of only 10% allowed |
| More than $50,000 |
100% - deductions cannot be claimed |
Seniors will be paying over $86 million in the next few years.
PROPERTY TAX DISCOUNT REDUCTION
Oregon's property owners currently receive a discount of 3% for early payment of property taxes. Beginning in 2004, this discount is reduced to 1.5%. According to the Legislative Summary, HB 2152 directs counties to transfer savings from discount reductions to State School Fund and General Fund.
Property owners are forced to hand money over to the state funds instead of giving it local services, or being able to keep it for home improvement and investment purposes.
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