HB 4136

Disallows, for purposes of personal income taxation, a 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

Eliminates the mortgage interest deduction for second homes and establishes the Oregon Homeownership Opportunity Account to fund down payment assistance.

Original Bill Text

Sponsors#

Chief Sponsors: Annessa Hartman, Jeff Golden, Courtney Neron Misslin

Co-Sponsors: Mark Gamba, Ken Helm, John Lively, Lamar Wise, Lew Frederick, Sara Gelser Blouin, James Manning Jr., Deb Patterson, Khanh Pham, Floyd Prozanski, Janeen Sollman

Overview#

Digest: The Act ends the tax deduction for mortgage interest paid for a taxpayer’s second home. (Flesch Readability Score: 61.8). Disallows, for purposes of personal income taxation, a 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. Establishes the Oregon Homeownership Opportunity Account. Transfers an amount equal to the estimated increase in revenue attributable to restrictions on the deduction of mortgage interest to the account, for the purpose of making down payment assistance payments. Applies to tax years beginning on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.

Public Testimony

Legislative History