Oregon’s Bold Move: Voluntary Race and
Ethnicity Data Collection on Tax Returns

July 8, 2024

Oregon's new initiative is making waves — what does it mean for you?

What’s the Buzz About Senate Bill 1?

Oregon is breaking new ground with Senate Bill 1, passed in 2023. It's the first state to ask taxpayers to voluntarily share their race and ethnicity on tax returns. This bold step aims to gather data to better understand how tax policies impact different communities across Oregon.

 

How Does it Work?

Starting with your 2024 tax returns (filed in 2025), you can choose to provide your race and ethnicity information through a special form. Not filing a return? No problem. You can still share your info directly via Revenue Online.

 

Potential Benefits:

• Informed Policy Making: More data can help identify how tax policies affect different racial and ethnic groups, potentially leading to more equitable tax laws.
• Enhanced Representation: By participating, you contribute to a more comprehensive understanding of Oregon's diverse population, which could influence future policy decisions.

 

Possible Concerns:

• Privacy Considerations: Some taxpayers may have reservations about sharing personal demographic information with the government, despite assurances of data protection.
• Data Usage: There are concerns about how the collected data might be used and whether it will genuinely contribute to equitable policy decisions.

 

Is Your Information Safe?

The Oregon Department of Revenue indicates that they will keep race and ethnicity info separate from personal details and use it strictly for research. It won't be used for audits, collections, or shared with the IRS. Also, tax professionals and software companies can’t use this data beyond helping you file your return.

 

What’s Next?

The collection starts with 2024 tax returns, with analysis beginning in 2025 and reports expected by 2026. The goal is to help Oregon create more balanced tax policies.

 

We're Here for You

At Grants Pass Tax Service, we're committed to keeping you informed about the latest tax news and information, so you can rest easy knowing that we've got you covered.

Image by Joeyy Lee