On April 28, 2025, the Senate Committee on Finance and Revenue received an informational briefing on Senate Bill 111, the state’s business alternative income tax that operates as a SALT (state and local tax) workaround.

Legislative staff explained the bill’s core design: Oregon and about 35 other states adopted a revenue‑neutral mechanism that allows pass‑through entities to pay a state tax at the entity level so individual owners can effectively obtain federal tax benefits otherwise limited by the federal SALT cap. The introduced version would extend the existing mechanism for two years.

Staff described several amendment options under consideration. The dash 2 amendment would add trusts as eligible members of pass‑through entities and allow overpayments of estimated BAIT (business alternative income tax) to be carried forward to the next tax year. The dash 6 would make trusts eligible effective tax year 2025 and retain the overpayment carryforward. The dash 7 would be the dash 6 plus an additional policy to allow individual members to opt out of the entity‑level tax.

Derek Singston, policy director and counsel for Oregon Business and Industry, urged the committee to adopt the dash 7 amendment, saying it provides the most flexibility for diverse organizational structures and does not change state revenue because the design is revenue neutral. "We would strongly recommend the dash 7 amendment," Singston said, adding that the opt‑out option helps businesses with different books and tax positions.

Committee members asked clarifying questions about the inclusion of trusts and the timing of implementation; staff noted the dash 6 moves trust eligibility up a year and that further technical work is possible if the committee schedules a work session. No vote was taken during the informational session.