HB 3900

Disallows, for purposes of personal income taxation, the mortgage interest deduction for a residence other than the taxpayer's principal residence, unless the taxpayer sells the residence or actively markets the residence for sale.

Bill Text

• Introduced

Disallows mortgage interest deductions for non-principal residences and phases out deductions for principal residences based on income, transferring revenue increases to the Oregon Housing Opportunity Account.

Original Bill Text

Overview#

Digest: The Act says a taxpayer must pay income tax on interest paid on a loan for a second or third or additional home. The Act says some taxpayers must pay income tax on some or all interest paid on loans for a principal home. (Flesch Readability Score: 69.1). Disallows, for purposes of personal income taxation, the mortgage interest deduction for a residence other than the taxpayer’s principal residence, unless the taxpayer sells the residence or actively markets the residence for sale. Phases out the allowable deduction for the interest for a principal residence based upon income. Disallows a deduction for a principal residence above the threshold income amount. Establishes the Oregon Housing Opportunity Account. Transfers an amount equal to the estimated increase in revenue attributable to restrictions on the deduction of mortgage interest to the account. Applies to tax years beginning on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.

Legislative History