The House Committee on Revenue convened on January 28, 2025, to discuss House Bill 2,119, which aims to enhance the legal standing of trade associations in Oregon tax court. The bill seeks to allow these associations to challenge tax provisions on behalf of their members, streamlining the litigation process and providing clarity on tax policies.

The meeting began with an overview of the current limitations faced by trade associations. Currently, they can only bring cases to court if a member has already suffered harm due to a tax provision. This often results in lengthy delays, as associations must wait for individual members to be affected before they can seek legal recourse. The proposed legislation would enable associations to proactively seek declaratory judgments regarding the applicability or constitutionality of tax policies, thus preventing potential harm before it occurs.

Derek Singston, policy director for Oregon Business and Industry, expressed strong support for the bill, highlighting its potential to reduce uncertainty for businesses and taxpayers. He noted that the current process is burdensome, requiring individual taxpayers to pay disputed taxes and wait for resolution, which can take years. By allowing associations to challenge tax provisions collectively, the bill aims to expedite legal resolutions and provide clearer guidance on tax matters.

Scott Bruin, president and CEO of the Oregon Bankers Association, echoed these sentiments, emphasizing that the bill would conserve judicial resources by allowing a single legal action rather than multiple individual challenges. He pointed out that the bill is narrowly tailored to focus on declaratory judgments, which would help address complex tax disputes without increasing litigation volume.

Committee members raised questions regarding the definition of "association" within the bill. It was clarified that the term encompasses a broad range of organizations, not limited to trade associations, which could include homeowners associations and non-profit organizations. This broad applicability aims to benefit various groups, ensuring that diverse interests can seek legal clarity on tax issues.

The meeting concluded with a consensus on the importance of the bill in providing a proactive approach to tax policy challenges, with members expressing their intent to further explore the definitions and implications of the legislation. The committee plans to follow up on these discussions as they move forward with the legislative process.