History of the kicker

The 1979 Oregon Legislat

ive Assembly

passed the "Two percent kicker" law

as a way to control state spending. The law

require

s

the state to

compare its revenue estimate (forecast) for each biennium (the two-year period starting on July 1 of each odd-numbered year) to the amount actually received during that biennium. After the biennium ends, if

actual revenue exceed

s

the forecast amount by more than

2

percent

, the revenue surplus is refunded to taxpayers or used to fund Oregon K-12 schools

.

When the kicker first started, it was credited to taxpayers as a percentage of their tax after all credits on their return for the kicker year. In the mid-1990s, this refund mechanism was changed to a check that was mailed out in December. The amount was based on tax before credits on the return for the prior year.

In 1999, when the kicker was in danger of being repealed, a bill was passed that would add the kicker law to the Constitution of Oregon. The constitutional amendment was approved by voters in 2000. Taxpayers were also given the option of donating their kicker to the State School Fund instead of receiving it.

In 2011, the kicker mechanism was changed back to an amount credited to taxpayers on the return for the kicker year, with the amount based on the prior year’s tax. This is the current mechanism.

The table below shows the kickers that have occurred since the law was first enacted.