HB 2578
Disallows, for purposes of personal income taxation, mortgage interest deduction for residence other than taxpayer's principal residence, unless taxpayer sells residence or actively markets residence for sale.
| Status | In House Committee (HHOUS) |
| Requested by | (at the request of former Representative Alissa Keny-Guyer) |
| Sponsors | Khanh Pham (Democrat) (Chief), Julie Fahey (Democrat) (Chief), Michael Dembrow (Democrat) (Chief), Jeff Golden (Democrat), Wlnsvey Campos (Democrat), Andrea Valderrama (Democrat) |
| Fiscal impact | May have fiscal impact, but no statement yet issued |
| Revenue impact | May have revenue impact, but no statement yet issued |
Bill Text
Disallows mortgage interest deductions for non-principal residences and phases out deductions for high-income earners, with revenue directed to a housing opportunity account.
Sponsors#
Chief Sponsors: Khanh Pham, Julie Fahey, Michael Dembrow
Co-Sponsors: Jeff Golden
Overview#
Disallows, for purposes of personal income taxation, mortgage interest deduction for residence other than taxpayer’s principal residence, unless taxpayer sells residence or actively markets residence for sale. Phases out allowable deduction for interest for principal residence based upon income. Disallows deduction for principal residence above threshold income amount. Establishes Oregon Housing Opportunity Account. Transfers amount equal to estimated increase in revenue attributable to restrictions on deduction of mortgage interest to account. Applies to tax years beginning on or after January 1, 2022. Takes effect on 91st day following adjournment sine die.
Public Testimony
| Name | Organization | Position | Date |
|---|---|---|---|
| Judy Froemke | Portland | Support | 2021-03-07 |
| Audrey Zunkel deCoursey | Portland | Support | 2021-03-07 |
| Debbie Aiona | League of Women Voters of Oregon | Support | 2021-03-09 |
| Diane Linn | Proud Ground | Support | 2021-03-09 |
| Claire Hall | Newport | Support | 2021-03-09 |
| Jon Nystrom | Portland | Support | 2021-03-09 |
| Nick Sauvie | Portland | Support | 2021-03-09 |
| Laurie Wimmer | Portland | Support | 2021-03-09 |
| Barbara Dudley | Oregon Working Families Party | Support | 2021-03-09 |
| David Welton | Bend | Support | 2021-03-09 |
| Colleen Sinsky | Bend | Support | 2021-03-09 |
| Tia Politi | Oregon Rental Housing Association | Oppose | 2021-03-10 |
| Donna Cohen | Portland | Support | 2021-03-10 |
| Tyler Mac Innis | Portland | Support | 2021-03-10 |
| Charles DeSeranno | Salem | Oppose | 2021-03-10 |
| John Calhoun | Portland | Support | 2021-03-10 |
| Sherri McPherson | Oregon Society of Certified Public Accountants | Oppose | 2021-03-10 |
| Anne Bridget Geertsen | Eugene | Oppose | 2021-03-10 |
| Jennifer Lundstrom | Portland | Support | 2021-03-10 |
| Shannon Vilhauer | Habitat for Humanity of Oregon | Support | 2021-03-10 |
| Eric Noll | City of Portland | Support | 2021-03-10 |
| Kate Allen | Astoria | Support | 2021-03-10 |
| Bradley Twiss | Portland | Support | 2021-03-10 |
| Laurel Marquand | Portland | Support | 2021-03-10 |
| Tabitha Boschetti | Portland OR | Support | 2021-03-10 |
| Daniel Hauser | Oregon Center for Public Policy | Support | 2021-03-10 |
| Eileen Kiely | Sunriver | Support | 2021-03-10 |
| Darrell Fuller | Oregon RV Dealers Assn | Oppose | 2021-03-10 |
| Michael Andersen | Sightline Institute | Support | 2021-03-10 |
| Alissa Keny-Guyer | Portland | Unknown | 2021-03-11 |
| Dan Meek | Portland | Support | 2021-03-11 |
| Beth Woodward | Portland | Support | 2021-03-11 |
| Brian Hoop | Portland | Support | 2021-03-11 |
| Alejandra Lilley | Philomath | Unknown | 2021-03-11 |
| Richard Wisner | Siletz | Oppose | 2021-03-11 |
| Tim Pitts | Think Real Estate | Support | 2021-03-11 |
| Doug Klotz | Portland | Support | 2021-03-11 |
| Gabriele Hayden | Eugene Oregon | Support | 2021-03-11 |
| Lily Copenagle | Portland | Support | 2021-03-11 |
| Lily Copenagle | Portland | Support | 2021-03-11 |
| Heather Staten | Hood River | Support | 2021-03-11 |
| Beatrice DOhrn | Eugene | Support | 2021-03-11 |
| Michael Parkhurst | Portland | Support | 2021-03-11 |
| Ruth Adkins | Portland | Support | 2021-03-11 |
| CASA of Oregon | CASA of ORegon | Support | 2021-03-11 |
| Michele Ruffin | Forward Together Action | Support | 2021-03-11 |
| Tammie Murray | NW Oregon Coast Range | Unknown | 2021-03-11 |
| Representative Khanh Pham | House District 46 | Support | 2021-03-11 |
| Kevin Christiansen | Oregon Bankers Association | Oppose | 2021-03-11 |
| Ernesto Fonseca | Hacienda CDC | Support | 2021-03-11 |
| Beth Jacobi | Tumalo | Unknown | 2021-03-11 |
| Stephanie Moll | Aumsville | Oppose | 2021-03-11 |
| Ann Pasbrig | Beaverton | Support | 2021-03-11 |
| AnnieRose Shapero | Portland | Support | 2021-03-11 |
| gabrielle roth | Portland | Support | 2021-03-12 |
| Britt Conroy | Ecumenical Ministries of Oregon | Support | 2021-03-16 |
| Marty Carty | Oregon Primary Care Association | Support | 2021-03-16 |
| David Wall | City of Newberg | Oppose | 2021-03-19 |
Legislative History
| Date | Chamber | Action |
|---|---|---|
| 2021-01-11 | H | First reading. Referred to Speaker's desk. |
| 2021-01-19 | H | Referred to Housing with subsequent referral to Revenue. |
| 2021-03-11 | H | Public Hearing held. |
| 2021-06-26 | H | In committee upon adjournment. |