Oregon’s Office of Economic Analysis has increased its revenue forecast for the state’s general fund by $3.3 million to $12.4 billion on the back of rising tax collections.
The projection for the 2009-2011 biennium showed that personal income taxes have begun to recover.
“Growth among Oregon’s primary revenue sources has now turned the corner, with personal income tax collections finally growing at a rate consistent with their long-run historical average,” the office of economic analysis said in the report released Tuesday. “However, the gains in personal income tax were largely offset by a downward revision to the near-term outlook for corporate income taxes.”
The report said corporate profits are expected to be weaker over the next several months, which has led to a more pessimistic revenue outlook for the next biennium.
The office said that many of the tax policy changes that help drive up taxes are not set in stone and need to be solidified by lawmakers.