The Oregon Department of Revenue is reminding taxpayers who plan to apply for the new Agriculture Employer Overtime Tax Credit that they need to set up a Revenue Online account soon.

Taxpayers who want to apply for the tax credit need to have a Revenue Online account prior to filling out an application. Applications must be filed electronically and will be available by January 1, 2024. No paper applications will be accepted. The application window closes January 31, 2024.

The Oregon Legislature passed House Bill 4002 in 2022 along party lines. The measure requires agricultural employers to pay certain workers for overtime hours worked, and creates a refundable personal or corporate income tax credit for employers for a percentage of wages paid as overtime pay, starting with the 2023 tax year.

The bill was passed despite a year-long workgroup saying they could not find a viable compromise that didn’t harm agriculture. Representative Anna Scharf (R-Polk) said, “this bill will only harm the workers that the supporters of the bill said it was designed to help. Farms cannot afford the overtime costs associated with this bill and will cut workers hours, cut positions, and automate additional processes eliminating jobs permanently. Tax credits take years to get, if they are received at all.”

A D V E R T I S E M E N T

A D V E R T I S E M E N T

This tax credit shifts the burden onto taxpayers for up to $55 million when Oregon is already one of the highest taxed states. The tax credit table is designed to hit employers that employ over 25 the hardest. The bill also specifies the hour threshold at which overtime is paid for different years, industries, and number of employees. Dairies that employ not more than 25 can apply for 100% overtime over 55 hours, while nondairy can claim 90% for 2023 then 80% for two years reducing to 60%. Employers over 50 are eligible for somewhat less graduating down to a 40-hour threshold and a 15% credit.

The department provides a video about how to set up and log in to a Revenue Online account.

If Ballot Initiative 3 is successful, which criminalizes breeding practices, labor cost will be the least of Oregonian’s worries.


--Donna Bleiler

Post Date: 2023-11-22 10:22:14

Last Update: 2023-11-22 15:50:41