By: Government Affairs Co-Chairs Jonathan Thompson and Darrell Fuller
Even-Numbered Year Sessions
Every-even numbered year – before the campaign season gets underway — the Oregon Legislature meets for 35 days in February and early March. It is a policy sprint.
KimThatcher
This short session was the last for Senator Kim Thatcher (R-Keizer), who has been representing our community for more than two decades. We appreciate her public service and tireless efforts to defend and protect our business community. She was reliably on “our” side.
Keizer Times
Salem Reporter
Kevin Mannix
Our State Representative, Kevin Mannix (R-Keizer), is running for re-election. The Keizer Chamber has already endorsed his effort to return to the Capitol. Like Senator Thatcher, Representative Mannix is a reliable supporter of our business community.
Rep. Mannix also stepped up by making a Capital Expenditure request on behalf of the Keizer Fire District and Marion County Fire District 1. The two adjoining fire districts are in the early stages of planning to build a single fire station which will be used by both Districts.
Rep. Mannix’s funding request was not successful this year, but he has already committed to helping the two fire districts receive crucial state funding for the new station during the 2027 Legislative Assembly.
Keizer Chamber Advocacy & Government Affairs
The Keizer Chamber has endorsed the needed joint fire station project, as did the Keizer City Council. Marion County Commission, Keizer’s neighborhood associations, and many other local organizations.
The Keizer Chamber of Commerce works hand-in-glove with other local Chambers and the Oregon State Chamber of Commerce (OSCC) to advocate on behalf of the business community. This cooperation is crucial when Legislators are in Salem. Chambers across the state act as the eyes, the ears, and the voice of the business community, along with the National Federal of Independent Business (NFIB), and Oregon Business & Industry. (OBI)
The link below is a very comprehensive report created by the OSCC in cooperation with the Salem Chamber.
Oregon State Chamber of Commerce Report on the 2026 Legislative Session
The Keizer Chamber also works closely with Oregon Business & Industry. They provided a roadmap for the Governor’s newly appointed Prosperity Council. You can read their recommendations at the link below.
OBI Prosperity Council Recommendations
Transportation Tax & One Big Beautiful Bill
The two most substantial issues during the short session regarded the Governor’s multi-billion dollar transportation tax increase plan, and the President’s One Big Beautiful Bill.
On the Transportation Tax Package, Oregon voters collected more than 250,000 signatures to force a public vote on the tax increase. The plan was to hold the election in November. However, the Legislature passed a bill moving the vote to the May Primary Election.
Since it is a referendum, a “YES” vote will support the tax increase package, and a “NO” vote will oppose the tax increases.
Legislators also grappled with the President’s One Big Beautiful Bill which made some significant tax reductions. It eliminated the tax on overtime hours. It eliminated the tax on tips. It provides a tax deduction for interest on a car loan (similar to mortgage deductions). And it allows bonus deprecation on business capital purchases (among other changes).
The tax reductions at the Federal level impact Oregon because our state tax laws allow the same deductions from Oregon income as the Federal government allows on Federal income.
Oregon lawmakers did not support some of the tax deductions provided in the Federal legislation, so they passed a law to “disconnect” Oregon from some portions of the new Federal tax deductions. They kept the deductions for overtime income and tips. However, Oregon taxpayers will have to add back their Federal deduction for auto loans and bonus depreciation before calculating their Oregon tax burden.
More details about the changes to Oregon tax law and the Federal disconnect can be found at the link below.
OPB Oregon disconnects from portions of Federal Tax Code
You can read the text of the bill here:
Oregon Senate Bill 1507 Enrolled
The disconnect will not go into effect as the Governor and Legislative Leadership had planned. The same group that collected signatures to refer the Transportation Tax Increase has started a signature gathering effort on the Disconnect Bill. This means the bill will not go into effect until after the signature gathering effort fails, or a vote is held if the signature gathering effort is successful. You can read more about this effort below.
OPB Republican Lawmakers Begin Effort to Refer Disconnect Bill
Your Chamber
Your Chamber of Commerce is dedicated to being your voice in Federal, state and local public policy arenas. It is a significant reason why we exist. The Chamber holds Government Affairs Committee (GAC) meetings open to all Chamber members almost monthly. The next meeting of the GAC is on TIME, DATE, where the central topic of discussion will be the results of the Primary Election. We hope you’ll join us.