To the taxpayers watching the 2026 legislative session, it feels less like a series of policy debates and more like a coordinated siege on the state’s economic vitality.
For the small business owner in Bend, the family mechanic in Medford, and the hotelier on the coast, the “Oregon Way” is increasingly being defined by a triple-threat of legislative maneuvers that threaten to turn the state into a tax-and-litigation island.
The Backdoor Raid: Senate Bill 1507
The first wave of the attack comes through SB 1507, described by the Taxpayers Association of Oregon as a $400 million “backdoor tax.” While the federal government recently moved to spark the economy with business depreciation and car interest deductions, Oregon leaders are looking to “disconnect” from these savings.
By severing ties with federal tax breaks, the state effectively snatches $400 million out of the hands of car owners and businesses. Beyond the raw cost, there is a hidden “administrative tax.” Former State Representative Tom Butler warns that this bill is essentially a “Tax Preparers Full Employment Act,” forcing businesses to maintain two separate, complex sets of books for every single asset they own. In a world where nine other states are cutting income taxes to attract growth, Oregon appears to be building a wall of red tape and higher burdens.
The Litigation Trap: House Bill 4098
While SB 1507 drains the bank account, HB 4098 threatens the very survival of local enterprises. This bill would make it significantly easier to sue businesses into “oblivion.” It is a legislative experiment that has already failed elsewhere; California adopted similar policies only to see personal injury premiums spike by up to 53% before being forced to repeal the law a decade later.
For Oregon businesses already reeling from a wave of vandalism and theft, the threat of skyrocketing insurance premiums could be the final blow. If insurance becomes unaffordable, the doors stay locked, the “Open” signs come down, and the community loses its heartbeat.
The Traveler’s Toll: House Bill 4134
Finally, for those seeking a brief escape from the rising costs of living, HB 4134 waits at the check-in desk. This bill seeks to nearly double the state hotel lodging tax to fund wildlife programs. It comes at a time when Oregonians are already being nickel-and-dimed for every outdoor activity. In 2026 alone, fees for camping, yurts, RV sites, and even paddleboards are on the rise. Critics argue that by making tourism more expensive, the state is biting the hand that feeds its rural economies.
Make Your Voice Heard
The battle for Oregon’s economic future is happening right now in the halls of the Capitol. The deadline for testimony on the $400 million tax hike is this Friday. Use the links below to submit your testimony and tell the legislature how these costs will impact your family and your livelihood:
- Oppose SB 1507 the $400M Backdoor Tax: Submit Testimony for SB 1507
- Oppose HB 4098 Stop the Litigation Spike: Submit Testimony for HB 4098
- Oppose HB 4134 Fight the Hotel Tax Increase: Submit Testimony for HB 4134
