Governor Kotek Supports Withholding ‘Kicker’ Tax Rebate for Wildfire Funding
SALEM, OR — In a move that could reshape Oregon’s approach to wildfire funding, Governor Tina Kotek announced her support on Monday for withholding a portion of the upcoming "kicker" tax rebate to finance prevention and suppression efforts. During a press briefing, Kotek emphasized the pressing need for resources to combat wildfires, suggesting that temporarily diverting funds from the expected $1.64 billion kicker tax refund could help rural areas disproportionately affected by fires.
“It’s crucial we find resources on a one-time basis to support rural Oregon,” Kotek remarked, calling the potential wealth transfer a compelling argument for bipartisan support, especially from Republicans, who might be more receptive given that many taxpayers receiving the rebate live outside fire-prone regions. Her spokesperson later clarified that only high-income earners would be affected by the withholding.
Historically, the kicker tax—a refund triggered when income tax revenues exceed projections—has been a contentious issue. Achieving legislative consensus to suspend the kicker requires a two-thirds majority, a formidable challenge in today’s politically divided climate.
Previously, in 2023, Kotek rejected similar proposals to reduce the rebate despite Oregon facing increasing wildfire costs, opting instead to prioritize tax relief for residents. Lawmakers are actively exploring alternative funding sources, such as increasing the bottle deposit and redirecting lottery revenues.
Senator Jeff Golden has championed the idea of suspending the entire kicker to create a sustainable funding mechanism for wildfires. He argues that interest from a fund utilizing kicker money could yield significant resources for long-term wildfire management.
As the wildfire season looms, Kotek and lawmakers are grappling with the urgent need to secure financial backing for emergency responses, and the proposal to tap into the kicker presents a provocative yet uncertain solution.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
