A new House Bill aimed at helping some of the state’s most vulnerable received a public hearing. HB 4079, known as the Oregon Freedom Pilot Program, would increase taxes on luxury items. The money collected would be given out to low-income pregnant women and adults who have aged out of the foster youth program. In 2016, the Oregon Legislature passed House Bill 4079 (HB 4079) which formed a pilot program aimed to help cities build affordable housing. The program allows two cities to add new housing units on lands currently outside their urban growth boundaries (UGBs) without going through the normal UGB expansion process.
Those who qualify would receive $750 a month for up to three years, but only if they agree to the requirements of completing a financial literacy class and letting purchases made with the $750 be tracked for analytical purposes. The $750 would come on a debit card. Witt says there are no restrictions on what that money can be spent on.
“We believe those two accountability measures are going to lead to success, not only for the individuals that we enroll in the program but the program itself, as well as the taxpaying public” said Rep. Brad Witt, D-Clatskanie. “What will be required here, is that folks that choose to participate in the program and want to avail themselves to the $750 monthly payment, be required to take a financial education course and also to agree that their purchases will be monitored by an independent third party anonymously.”
“That way we can then have a system of constant improvement on the financial literacy course, knowing what it is that we need to be instructing folks on to achieve the best results that we possibly can out of the program. Jewelry would be a $20,000 threshold; we have a $15,000 threshold for items like snowmobiles,” said Witt. “Each item, the threshold pricing point was determined by what is the average cost of that item in the marketplace and we tried to get it at the very high end of that market to make sure it was luxury and not an everyday purchase price.”
HB 4079 was heard in the Human Services Committee. Witt says this bill will make Oregon the first state in the country to provide such legislation.
The summary reads, “The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the measure as introduced. Establishes Oregon Freedom Pilot Program in Department of Human Services to provide monthly stipends to low-income families.”
“It Sunsets December 31, 2026. Imposes sales and use tax on sales of certain luxury goods. Establishes Oregon Freedom Pilot Program Fund and continuously appropriates moneys in fund to Department of Human Services for purpose of implementing Oregon Freedom Pilot Program. Provides for general administration, col- lection and enforcement of taxes by Department of Revenue. Takes effect on 91st day following adjournment sine die.”
