HB 4016
Plain-language analysis
Generated analysis, not an official summary or legal advice. Confirm with linked Oregon documents.
HB 4016 requires state contractors and their owners (holding at least a 20 percent ownership interest) to obtain a Department of Revenue certificate of tax compliance for contracts exceeding $250,000 before execution, renewal, or extension. Contracts at or below $250,000 require only self-attestation. The measure mandates DOR issue certificates within 14 days if compliant, permits installment payment plans with provisional certificates, and directs the Secretary of State to study business registry reliability for tax compliance purposes. It appropriates approximately $348,848 in General Fund and $74,705 in Other Funds for the 2025-27 biennium to fund five new DOR positions, with ongoing biennial costs of roughly $1.1 million.
Basis: Inferred · Sources: Enrolled; Fiscal Impact Statement A; Budget Report B
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
Hypothesis: The measure replaces or supplements the prior self-attestation system with independent DOR verification for larger contracts to create a stronger administrative incentive for vendors to resolve tax debts before securing state business. Basis inference: The enrolled text shifts from contractor self-certification to mandatory DOR certificates for contracts >$250k, and LRO analysis explicitly notes it adds an incentive for contractors to stay current by potentially shifting payments forward in time.
Basis: Inferred · Sources: Staff Measure Summary A; Revenue Impact HB 4016 1
Must secure DOR certificates for contracts >$250k or self-attest for ≤$250k; face automatic contract blockage if noncompliant.
Basis: Inferred · Source: Enrolled
Statutorily classified as owners and required to individually obtain compliance certificates alongside the provider entity.
Basis: Inferred · Source: Enrolled
Gains authority to issue/deny certificates, manage installment agreements, and process approximately 5,600 additional annual requests; receives dedicated funding and five new permanent positions.
Basis: Inferred · Sources: Fiscal Impact Statement A; Budget Report B
Must verify certificate submission before executing contracts and report annual license/provider lists to DOR by March 1.
Basis: Inferred · Source: Enrolled
Mandated to study Corporation Division business registry methods for tax compliance effectiveness, with preliminary reporting by December 31, 2026, and final reporting after the 2027 session.
Basis: Inferred · Source: Enrolled
Contractors must initiate DOR certificate requests at least six months before contract execution or renewal. DOR must respond within 14 days if compliant. Installment agreements are permitted, with provisional certificates issued during compliance; failure to comply voids the certificate unless reasonable cause is found.
Basis: Inferred · Source: Enrolled
DOR estimates 1,603 contracts annually will exceed the threshold, requiring approximately 5,610 compliance checks per year. The measure increases the prior $1,000 exemption threshold to $250,000, significantly expanding the certificate requirement's scope.
Basis: Inferred · Sources: Fiscal Impact Statement A; Budget Report B
Contracts cannot be executed without certificates. DOR’s written representation of noncompliance constitutes prima facie evidence in agency proceedings. Political subdivisions are explicitly excluded from the certificate requirement but remain subject to annual provider list reporting.
Basis: Inferred · Source: Enrolled
Mid-sized environmental services firm
A firm with a complex, multi-year tax dispute successfully negotiates a 36-month installment agreement with DOR. The provisional certificate allows them to win and execute a $4.2 million state contract, preserving 150 jobs and funding critical infrastructure work that would otherwise stall due to administrative uncertainty.
Basis: Inferred · Source: Enrolled
Small consulting firm
A firm with a legitimate but unresolved $1,200 property tax assessment error (which is excluded from the statutory tax definition) experiences a cascading administrative delay in DOR processing. The 14-day deadline passes without resolution, triggering automatic contract blockage for three pending renewals exceeding $250,000. The firm faces immediate cash flow disruption and potential insolvency despite having no income tax violations.
Basis: Inferred · Source: Enrolled
inference
Sources · Enrolled
Accelerates state tax debt collection and vendor accountability by mandating independent DOR verification for large contracts, but imposes significant administrative delays and compliance costs that may exclude vendors with minor or disputed tax issues from state procurement markets. Upsides include stronger revenue protection and reduced state exposure to noncompliant contractors; downsides involve processing bottlenecks, increased operational burdens for businesses, and potential market contraction for small firms unable to navigate certificate requirements quickly.
Stronger administrative leverage for tax debt collection and reduced state financial exposure to noncompliant vendors.
Basis: Inferred · Source: Revenue Impact HB 4016 1
Standardized, independent verification reduces reliance on self-certification and potential misrepresentation.
Basis: Inferred · Source: Staff Measure Summary A
Processing bottlenecks and six-month advance application requirements may delay contract execution and disrupt state procurement timelines.
Basis: Inferred · Source: Enrolled
Higher compliance costs and potential market exclusion for small businesses or firms with minor, technical, or disputed tax filings.
Basis: Inferred · Source: Fiscal Impact Statement A
The enrolled version finalizes the B-engrossed text by incorporating all Ways and Means fiscal notes (Sections 7-12) and the Secretary of State study mandate (Section 5). The primary substantive change from the previous House Amendments to A-Engrossed is the formalization of appropriation language for DOR divisions and the explicit repeal date for Section 5. No changes alter the core tax compliance certification threshold, ownership definition, or contracting obligations.
Formalized appropriation of $348,848 General Fund and $74,705 Other Funds for DOR implementation, plus expenditure limitation increases across Personal Tax and Compliance, Business, and Collections divisions.
Ensures dedicated funding and statutory authority for processing the new certificate workload.
Sources · Enrolled
Added Section 5 directing the Secretary of State to study business registry reliability for tax compliance, with reporting deadlines in 2026 and 2027, and Section 6 repealing Section 5 on January 2, 2028.
Creates a time-limited legislative mandate to evaluate registry infrastructure without permanently altering current business registration statutes.
Sources · Enrolled
Tradeoff: Accelerates state tax debt collection and vendor accountability by mandating independent DOR verification for large contracts, but imposes significant administrative delays and compliance costs that may exclude vendors with minor or disputed tax issues from state procurement markets. Upsides include stronger revenue protection and reduced state exposure to noncompliant contractors; downsides involve processing bottlenecks, increased operational burdens for businesses, and potential market contraction for small firms unable to navigate certificate requirements quickly.
high confidence. Analysis is grounded exclusively in the enrolled bill text and official Legislative Revenue Office/Fiscal Office analyses. No legislative intent or external events are inferred beyond what the text and supporting documents explicitly state.
Possible effects if adopted; not current bill text.
The amendment establishes a two-tier tax compliance verification system for Oregon state public contracts. For contracts valued at $250,000 or less, bidders may self-attest to tax compliance using methods agencies deem credible and convenient. For contracts exceeding $250,000, bidders must obtain and submit an official certificate of tax compliance from the Department of Revenue (DOR). This shifts administrative verification burdens away from smaller procurements while mandating formal DOR certification for larger ones, requiring DOR to process thousands of additional annual requests and necessitating new state appropriations.
Basis: Inferred · Sources: Amendment -A7 — proposed amendment; Fiscal Impact Statement A
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The tiered structure suggests a policy objective of reducing procurement friction and administrative costs for smaller contracts while preserving formal revenue assurance mechanisms for larger expenditures. This inference is drawn from the explicit $250,000 threshold that triggers mandatory DOR certification versus self-attestation for amounts at or below that limit.
Basis: Inferred · Source: Amendment -A7 — proposed amendment
Must implement dual verification standards based on contract value, altering bid evaluation workflows and requiring agency-specific attestation protocols for smaller contracts.
Basis: Inferred · Source: Amendment -A7 — proposed amendment
Face mandatory DOR certification processes for contracts over $250,000, but retain flexible self-attestation options for smaller contracts.
Basis: Inferred · Source: Amendment -A7 — proposed amendment
Subject to the same compliance verification requirements as the contracting entity for larger procurements.
Basis: Inferred · Source: Fiscal Impact Statement A
Must process approximately 5,610 additional annual compliance requests, requiring new staffing and funding allocations across Personal Tax and Compliance, Business, and Collections divisions.
Basis: Inferred · Source: Fiscal Impact Statement A
Directed to study business registry reliability and tax compliance data integration, with reporting deadlines in 2026 and 2027.
Basis: Inferred · Source: Fiscal Impact Statement A
Agencies must adjust procurement rules to accept flexible attestation for smaller deals while enforcing strict DOR certificate submission for larger ones. Businesses must secure DOR certificates before executing contracts over $250,000 or risk disqualification.
Basis: Inferred · Source: Amendment -A7 — proposed amendment
DOR requires $348,848 in General Fund and $74,705 in Other Funds for the 2025-27 biennium to cover five new permanent positions (1.75 FTE) to manage increased workload.
Basis: Inferred · Source: Fiscal Impact Statement A
Contractors with unresolved tax debt may be disqualified from state contracts exceeding $250,000 unless they qualify for DOR-issued provisional certificates via installment payment plans extending up to 36 months.
Basis: Inferred · Source: Fiscal Impact Statement A
The measure relies on existing DOR collection tools but adds a procurement-based compliance incentive that may accelerate tax payments, though overall revenue impact is expected to be minimal.
Basis: Inferred · Source: Revenue Impact HB 4016 1
Specialized local firm
A specialized local firm wins a $249,999 state contract and uses a simple self-attestation form approved by the agency, avoiding DOR processing delays and securing funding for immediate project mobilization.
Basis: Inferred · Source: Amendment -A7 — proposed amendment
Regional contractor
A regional contractor with a $250,001 contract faces a 36-month payment plan for back taxes, is denied a compliance certificate due to strict DOR rules, and loses eligibility for all future state procurements despite having the operational capacity to perform the work.
Basis: Inferred · Source: Fiscal Impact Statement A
inference
Sources · Amendment -A7 — proposed amendment
The measure trades uniform, DOR-verified tax compliance for all state contractors against reduced administrative friction and faster procurement cycles for smaller contracts, while increasing DOR's operational costs for larger deals. Upsides include streamlined bidding for small businesses and accelerated project timelines; downsides include potential revenue leakage from inconsistent self-attestation standards and increased processing burdens on DOR.
Streamlined procurement processes for smaller contracts reduce administrative delays and lower compliance costs for bidders.
Basis: Inferred · Source: Amendment -A7 — proposed amendment
Mandatory DOR certification for larger contracts creates a stronger financial incentive for contractors to maintain tax compliance, potentially accelerating revenue collection.
Basis: Inferred · Source: Revenue Impact HB 4016 1
Inconsistent agency standards for self-attestation may allow non-compliant bidders to win contracts, undermining tax collection goals.
Basis: Inferred · Source: Amendment -A7 — proposed amendment
Increased DOR processing workload requires significant new appropriations and permanent staffing, diverting resources from other tax administration functions.
Basis: Inferred · Source: Fiscal Impact Statement A
high confidence. The amendment text, fiscal impact statements, and revenue impact analyses provide clear, direct evidence of the measure's mechanics, costs, and operational requirements. No speculative claims are presented as established fact.
The amendment establishes a tiered tax compliance requirement for state contractors: contracts valued at $250,000 or less require only self-attestation of compliance with ORS 305.380 tax laws, while contracts exceeding that threshold require both a sworn certification and a formal certificate of tax compliance from the Department of Revenue (DOR) for the contracting entity and any owners holding at least a 20% interest. Material consequences include increased administrative processing for DOR, potential disqualification of non-compliant contractors from state procurement, accelerated collection of delinquent taxes through contract eligibility leverage, and new reporting obligations for the Secretary of State regarding business registry reliability (sunset in 2028).
Basis: Inferred · Sources: Amendment -A6 — proposed amendment; House Amendments to Introduced; Fiscal Impact Statement A; Staff Measure Summary A
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The legislature likely aims to close a compliance gap by replacing low-threshold self-attestation with formal DOR verification for substantial state contracts, thereby using procurement leverage to accelerate tax debt collection and ensure vendors are financially responsible.
Basis: Inferred · Source: House Amendments to Introduced
Must verify contractor/owner compliance via self-attestation or DOR certificates before awarding contracts and must withhold execution if certificates are missing.
Basis: Inferred · Source: House Amendments to Introduced
Must maintain tax compliance, obtain DOR certificates for contracts >$250k, and face disqualification if non-compliant.
Basis: Inferred · Source: House Amendments to Introduced
Will process approximately 5,610 additional annual compliance requests and issue certificates within 14 days.
Basis: Inferred · Source: Fiscal Impact Statement A
Must conduct a study on Corporation Division business registry reliability for tax compliance purposes, with reporting deadlines in 2026 and 2027.
Basis: Inferred · Source: House Amendments to Introduced
Contractors must proactively monitor tax filings and request DOR certificates well before contract execution, bearing administrative costs for compliance requests and potential payment plan arrangements. Agencies must integrate certificate verification into procurement workflows, risking delays if processing bottlenecks occur. Non-compliant entities lose access to state contracts >$250k unless they resolve debts or secure approved payment plans (up to 36 months), while smaller contractors face lower barriers via self-attestation. DOR gains a contractual compliance lever alongside existing vendor offset and collection tools, but misclassification of ownership thresholds or vague attestation standards could create enforcement inconsistencies.
Basis: Inferred · Sources: Fiscal Impact Statement A; Staff Measure Summary A; Revenue Impact HB 4016 1
Contractor with delinquent taxes
A contractor with $100,000 in delinquent taxes secures a 36-month installment agreement, obtains a provisional DOR certificate, and wins a $2M state infrastructure contract, generating revenue that accelerates debt repayment while delivering public services.
Basis: Inferred · Sources: House Amendments to Introduced; Fiscal Impact Statement A
Specialized small business with complex ownership
A specialized business with complex ownership structures cannot immediately resolve a minor filing discrepancy, loses eligibility for a critical >$250k contract, faces cash flow disruption, and exits the state contracting market entirely.
Basis: Inferred · Source: House Amendments to Introduced
The text legally permits provisional certificates and discretionary attestation; abuse arises only if enforcement is inconsistent, thresholds are misapplied, or verification scope expands beyond the statute's explicit tax-law focus.
Sources · House Amendments to Introduced
The measure trades increased administrative burden and potential market exclusion for non-compliant contractors against accelerated tax debt collection and enhanced financial vetting of state vendors.
Stronger leverage for tax compliance and reduced state exposure to financially unstable contractors.
Basis: Inferred · Source: Fiscal Impact Statement A
Formalized verification for large procurements, improving vendor financial responsibility standards.
Basis: Inferred · Source: Staff Measure Summary A
Implementation costs for DOR and procurement delays if certificate processing bottlenecks occur.
Basis: Inferred · Source: Fiscal Impact Statement A
Disproportionate barriers for businesses with complex ownership or minor filing issues, potentially reducing market competition.
Basis: Inferred · Source: House Amendments to Introduced
high confidence. The statutory text, fiscal impact statements, and staff summaries provide clear operational parameters, thresholds, and workload estimates. Uncertainty is limited to unrecorded legislative intent and downstream market effects.
The amendment appropriates $423,553 ($348,848 General Fund, $74,705 Other Funds) to the Department of Revenue for the 2025–27 biennium to fund five new permanent positions across three divisions. If adopted alongside HB 4016, it enables DOR to process mandatory tax compliance certificates for state contractors and owners on contracts exceeding $250,000, replacing self-attestation with verified certification and conditioning contract execution on certificate submission.
Basis: Inferred · Sources: Amendment -A4 — proposed amendment; Fiscal Impact Statement A; Budget Report B
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The amendment likely aligns statutory funding with DOR’s projected workload for verifying tax compliance across approximately 5,600 annual contractor requests, ensuring the department can meet the 14-day issuance mandate without straining existing resources. Basis: The fiscal impact analysis estimates five new FTE positions to process the anticipated volume of certificate requests triggered by the $250,000 threshold change, and the amendment precisely funds those divisions.
Basis: Inferred · Sources: Fiscal Impact Statement A; Amendment -A4 — proposed amendment
Must obtain DOR-issued tax compliance certificates for contracts >$250,000; faces potential disqualification if delinquent on taxes (excluding property taxes) or unable to secure a payment plan.
Basis: Inferred · Sources: Staff Measure Summary A; Fiscal Impact Statement A
Gains statutory authority and funding to issue certificates within 14 days, requiring new staff across Personal Tax and Compliance, Business, and Collections divisions to manage processing, policy coordination, and collections verification.
Basis: Inferred · Sources: Fiscal Impact Statement A; Amendment -A4 — proposed amendment
Must verify certificate submission before executing contracts >$250,000; cannot execute agreements without valid certification.
Basis: Inferred · Sources: Staff Measure Summary A; Amendment -A4 — proposed amendment
Contractors face new administrative costs and potential delays in securing or renewing large state contracts if tax records are not current. DOR must implement a 14-day issuance mandate, potentially creating processing bottlenecks during peak periods. The shift from self-attestation to verified certification increases compliance rigor but may reduce the pool of eligible bidders for certain procurement opportunities. Existing vendor offset and delinquent taxpayer list mechanisms remain available but are now supplemented by this pre-contract gatekeeping requirement.
Basis: Inferred · Sources: Revenue Impact HB 4016 1; Revenue Impact Statement A
State contractors and business owners (≥20% interest)
A contractor with a 36-month approved payment plan successfully obtains a certificate, secures a $10M state infrastructure contract, and uses the contract revenue to fully satisfy tax debt ahead of schedule, avoiding liens or garnishment.
Basis: Inferred · Sources: Fiscal Impact Statement A; Revenue Impact HB 4016 1
State contractors and business owners (≥20% interest)
A small business owner with a minor, disputed property tax assessment (excluded from compliance) but a temporary cash-flow issue triggering a 30-day late filing penalty is denied a certificate, causing them to forfeit a $300,000 contract renewal and face immediate liquidity crisis.
Basis: Inferred · Sources: Fiscal Impact Statement A; Revenue Impact HB 4016 1
The text legally permits DOR to deny certificates based on strict filing/payment timelines and allows agencies to refuse contracts without certification. Weak enforcement or inconsistent application of the 14-day issuance window could lead to de facto denial through administrative delay, effectively penalizing contractors for minor procedural lapses rather than substantive tax evasion. Misclassification of ownership interests (e.g., below vs. above 20%) could trigger unnecessary compliance burdens or create loopholes for circumvention.
Sources · Staff Measure Summary A; Amendment -A4 — proposed amendment
The measure trades increased administrative burden and potential contractor disqualification for the state to secure verified tax compliance before awarding large contracts, balancing fiscal accountability against procurement flexibility and bidder access. Upsides include accelerated tax collection and reduced risk of public funds going to delinquent taxpayers; downsides include delayed contract execution, reduced competition, and heightened vulnerability for businesses with temporary cash-flow constraints.
Accelerated tax collection and reduced risk of public funds going to delinquent taxpayers
Basis: Inferred · Sources: Fiscal Impact Statement A; Revenue Impact HB 4016 1
Delayed contract execution, reduced competition, and heightened vulnerability for businesses with temporary cash-flow constraints
Basis: Inferred · Sources: Fiscal Impact Statement A; Revenue Impact HB 4016 1
high confidence. The amendment text explicitly states funding amounts and division allocations. Fiscal and revenue impact documents provide consistent workload estimates and statutory mechanics. No contradictory evidence is present in the supplied record.
The proposed amendment would require state contractors and their major owners (≥20% interest) to obtain a Department of Revenue tax compliance certificate before entering, renewing, or extending contracts over $250,000, replacing the current self-attestation requirement. It raises the exemption threshold from $1,000 to $250,000, mandates DOR issue certificates within 14 days, and allows installment payment plans as a compliance pathway. Material consequences include an estimated 5,600+ additional annual compliance requests for DOR, new administrative costs for the department, and potential contract disqualification for noncompliant businesses, though overall revenue impact is projected to be minimal.
Basis: Inferred · Sources: Amendment -2 — proposed amendment; Fiscal Impact Statement A
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The measure appears designed to streamline contractor compliance by raising the certificate threshold to $250,000 while strengthening enforcement for larger contracts through mandatory DOR verification and installment plan options.
Basis: Inferred · Source: Amendment -2 — proposed amendment
Must verify DOR certificates before executing contracts over $250,000 and face a hard prohibition on contract execution without valid certificates.
Basis: Inferred · Source: Amendment -2 — proposed amendment
Must obtain and submit tax compliance certificates for contracts over $250,000, or self-attest for contracts at or below $250,000. Must secure certificates no earlier than six months prior to contracting.
Basis: Inferred · Source: Amendment -2 — proposed amendment
Must individually obtain and submit compliance certificates alongside the provider entity, expanding the scope of verified parties beyond the contracting business.
Basis: Inferred · Source: Amendment -2 — proposed amendment
Processes approximately 5,610 additional annual certificate requests, manages installment agreements, and issues provisional certificates. Faces new permanent staffing costs to handle the workload.
Basis: Inferred · Source: Fiscal Impact Statement A
Directed to study business registry methods for tax compliance, with a sunset date of January 2, 2028.
Basis: Inferred · Source: Amendment -2 — proposed amendment
Contractors must budget administrative time and secure DOR certificates at least six months before contracting to avoid execution delays.
Basis: Inferred · Source: Amendment -2 — proposed amendment
Businesses with outstanding taxes may use installment plans to maintain eligibility, but defaulting voids the certificate and triggers immediate payment demands.
Basis: Inferred · Source: Amendment -2 — proposed amendment
Agencies face a statutory prohibition on executing contracts without valid certificates, creating a compliance gate that cannot be bypassed by agency discretion.
Basis: Inferred · Source: Amendment -2 — proposed amendment
DOR gains expanded authority to intercept state payments via existing vendor offset programs if compliance lapses, though the measure itself does not create new tax liabilities.
Basis: Inferred · Source: Revenue Impact Statement A
Mid-sized construction firm with temporary cash flow shortfall
The firm secures a 36-month installment plan with DOR, allowing it to retain critical state infrastructure contracts and avoid layoffs despite delayed municipal payments, demonstrating how the installment provision preserves business continuity during liquidity stress.
Basis: Inferred · Source: Amendment -2 — proposed amendment
Specialized technology vendor with minor filing discrepancy
The vendor discovers a good-faith error on a single quarterly return, cannot obtain a certificate within the contracting window, and loses all state contracts exceeding $250,000, causing severe liquidity strain and market exclusion despite no intent to evade taxes.
Basis: Inferred · Source: Amendment -2 — proposed amendment
The statute authorizes provisional certificates during active installment plans and sets a fixed dollar threshold, creating structural opportunities for circumvention if agencies or contractors misclassify contract values or payment statuses.
Sources · Amendment -2 — proposed amendment
The measure trades expanded administrative oversight and potential contract disqualification for noncompliant businesses against improved tax collection incentives and streamlined compliance thresholds for larger state contracts. Upsides include stronger leverage for tax collection, clearer contractor accountability, and preserved eligibility through installment plans; downsides include increased processing burdens for DOR, higher upfront compliance costs for contractors, and risk of unintended market exclusion for businesses with temporary cash flow or minor filing errors.
Increases certainty that large state contracts are awarded to tax-compliant entities, reducing public subsidy of delinquent taxpayers.
Basis: Inferred · Source: Revenue Impact Statement A
Codifies installment payment plans as a valid compliance pathway, allowing businesses to maintain state contracts while resolving tax debt over time.
Basis: Inferred · Source: Amendment -2 — proposed amendment
Imposes significant administrative and staffing costs on DOR, with projected expenditures exceeding $1.1 million in the 2027-29 biennium.
Basis: Inferred · Source: Fiscal Impact Statement A
Creates a rigid execution barrier that may disqualify otherwise capable contractors due to temporary cash flow constraints or minor administrative errors, potentially reducing competition for state contracts.
Basis: Inferred · Source: Amendment -2 — proposed amendment
high confidence. The analysis relies on the explicit text of the proposed amendment and official legislative revenue impact statements. No enacted status or unverified claims are included.
The amendment replaces the current self-attestation system with a verified Department of Revenue certification requirement for state contracts exceeding $250,000. Providers and owners holding at least a 20 percent interest must obtain a DOR certificate confirming tax compliance before an agency can execute, renew, or extend a contract. The measure raises the mandatory certificate threshold from $1,000 to $250,000, directs agencies to supply provider lists to DOR upon request, and mandates that DOR issue certificates within 14 days if compliant. Material consequences include new administrative workflows for state agencies, potential contract disqualification for businesses with unresolved tax debts (unless on an approved installment plan), and approximately $423,553 in initial Department of Revenue implementation costs for five new permanent positions.
Basis: Inferred · Sources: Amendment -1 — proposed amendment; Fiscal Impact Statement A; Budget Report B
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
Lawmakers may be attempting to balance reduced administrative friction for small vendors against strengthened enforcement for larger state contracts. The text simultaneously raises the mandatory certificate threshold from $1,000 to $250,000 while replacing self-attestation with verified certificates for contracts above that amount, suggesting a policy shift toward targeted compliance verification rather than universal attestation.
Basis: Inferred · Source: Amendment -1 — proposed amendment
Must obtain a DOR-issued tax compliance certificate for contracts over $250,000. Businesses with unresolved tax debts may be temporarily disqualified from state contracts unless they enter an approved installment agreement. Contracts at or below $250,000 retain the self-attestation process.
Basis: Inferred · Source: Amendment -1 — proposed amendment
Must verify DOR certificates before executing, renewing, or extending contracts. Must supply provider lists to DOR upon request and suspend contracts if DOR issues a non-compliance notice.
Basis: Inferred · Source: Amendment -1 — proposed amendment
Gains authority to issue provisional certificates, enforce via agency contract suspension, and manage installment agreements. Faces an estimated 5,610 additional annual compliance requests, requiring five new permanent FTEs.
Basis: Inferred · Sources: Amendment -1 — proposed amendment; Fiscal Impact Statement A
Directed to study business registry methods for tax compliance, assess statutory sufficiency, and consult with DOR, DOJ, and LRO. This directive is scheduled for repeal in 2028.
Basis: Inferred · Source: Amendment -1 — proposed amendment
Contractors must proactively resolve tax liabilities or secure installment agreements before bidding on large state contracts. Agencies will need to integrate certificate verification into procurement workflows, potentially extending bid processing times. DOR's 14-day issuance mandate may create processing bottlenecks if staffing does not scale immediately. The measure allows multi-year payment plans (up to 36 months per existing rules), providing a compliance pathway for cash-strapped but otherwise qualified businesses.
Basis: Inferred · Sources: Amendment -1 — proposed amendment; Revenue Impact Statement A
Contractor with temporary cash-flow disruption
A specialized vendor faces a $75,000 tax liability due to a delayed refund. Under the amendment, they enter a 36-month installment agreement, receive a provisional certificate, secure a critical $400,000 state contract, and use the steady procurement revenue to fully resolve their debt without bankruptcy or layoffs.
Basis: Inferred · Source: Amendment -1 — proposed amendment
Small business with a disputed tax assessment
A firm contests a $50,000 tax assessment through administrative appeal. Because DOR rules require all returns filed for three years and no outstanding balance unless on a plan, the firm cannot obtain a certificate. The agency is legally barred from executing a $300,000 contract, causing immediate market exclusion, loss of competitive advantage to compliant rivals, and potential workforce reductions.
Basis: Inferred · Sources: Amendment -1 — proposed amendment; Staff Measure Summary A
The text legally permits strict certificate denial and agency suspension, but weak enforcement guidance or misclassification of business ownership structures could produce unlawful exclusionary outcomes not contemplated by the statutory language.
Sources · Amendment -1 — proposed amendment
The measure strengthens tax collection enforcement for large state contracts at the cost of increased administrative burdens and potential market exclusion for financially strained businesses, trading accelerated compliance and reduced revenue loss against implementation costs and procurement friction.
Accelerated tax compliance through verified certificates rather than self-attestation. Reduced revenue exposure on major state contracts. Clearer enforcement mechanisms via DOR notice and agency suspension authority.
Basis: Inferred · Sources: Amendment -1 — proposed amendment; Revenue Impact Statement A
New administrative costs for contractors and state agencies. Potential temporary lockout of qualified businesses with unresolved tax debts or pending appeals. Expanded regulatory oversight of business registries with a sunset provision that may leave long-term compliance infrastructure gaps.
Basis: Inferred · Sources: Amendment -1 — proposed amendment; Fiscal Impact Statement A
high confidence. Analysis is grounded exclusively in the supplied proposed amendment text, fiscal impact statements, and staff summaries. No enacted status or external speculation is applied.
46 records currently loaded
Records available in the current snapshot.
Earliest loaded signal
Introduced bill text posted
Posted Jan 28, 2026, 3:25 PM PST
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Selected document summary
Substantial replacement
What the document says to change
Delete lines 5 through 27 and delete pages 2 through 5 and insert:
Inferred policy relationships
Likely revised proposal · Amendment -2
High confidence from shared inserted text: ORS 118.525, ORS 192.245, ORS 192.311, ORS 279, ORS 305.220, Program administration, Effective date.
This is a text-based early signal, not an official statement that one amendment changes the other.
Official records (1)
Oregon records no individual sponsors.
Presession filing record
Introduced and printed pursuant to House Rule 12.00. Presession filed.
LC 186 became HB 4016
Mapping document posted: January 2, 2026 at 2:30 PM PST
Work Session — 4:15 - 4:30 Introduction of Committee Bills LC 186 Tax Compliance LC 190 Update Federal Connection LC 195 Study on the State's Financial System
House Interim Committee on Revenue introduction work session
Committee meeting: January 13, 2026 at 2:30 PM PST
HR A
Committee introduction motion
Committee meeting: January 13, 2026 at 2:30 PM PST
Vice-Chair Walters moved to adopt the listed legislative concepts as committee bills. Motion Passed
Committee introduction allows consideration; it does not imply every member supported the introduced or final text.
House carrier
Representative Nancy Nathanson
Third Reading Of House Bills · Version B
Senate carrier
Senator Lew Frederick
Third Reading Of House Measures · Version B
A carrier presents the measure or report but is not necessarily its sponsor or author.
Records already listed in Activity are not repeated here.
46 events
Full timeline
46 entries shown.
Chapter 102, (2026 Laws): Effective date June 5, 2026.
Governor signed.
President signed.
Speaker signed.
Third reading. Carried by Frederick. Passed.
Ayes, 18; Nays, 11--Anderson, Drazan, Girod, Linthicum, McLane, Nash, Robinson, Smith DB, Starr, Thatcher, Weber; Excused, 1--Hayden.
Second reading.
Recommendation: Do pass the B-Eng. bill.
Budget Report · Version B
Referred to Ways and Means.
First reading. Referred to President's desk.
Third reading. Carried by Nathanson. Passed.
Ayes, 35; Nays, 21--Boice, Boshart Davis, Breese-Iverson, Bunch, Cate, Diehl, Edwards, Elmer, Harbick, Helfrich, Lewis, Mannix, McIntire, Osborne, Owens, Reschke, Scharf, Skarlatos, Wallan, Wright, Yunker; Excused, 3--Hartman, Levy B, Valderrama; Excused for Business of the House, 1--Levy E.
Second reading.
House Amendments to A-Engrossed bill text posted
Recommendation: Do pass with amendments and be printed B-Engrossed.
Revenue Impact Statement · Version B
Budget Report · Version B
Work Session held.
Amendment -A7 adopted
Adopted
Work Session
Heard and Reported Out with Amendments · Agenda item 2 · Room HR 40 · Relating to tax compliance (Representative Nosse, carrier)
Returned to Full Committee.
Work Session held.
Work Session
Heard and Reported Out · Agenda item 1 · Room HR F · Relating to tax compliance
Amendment -A6 proposed
Amendment -A4 proposed
Assigned to Subcommittee On Capital Construction.
House Amendments to Introduced bill text posted
Referred to Ways and Means by prior reference.
Recommendation: Do pass with amendments, be printed A-Engrossed, and be referred to Ways and Means by prior reference.
Work Session held.
Work Session
Heard and Reported Out with Amendments · Agenda item 1 · Room HR A · Carried over from the 2/9/26 meeting. Requires public contractors to demonstrate and maintain tax compliance, through a certification process, as a condition of the execution of a public contract.
Revenue Impact HB 4016 2
Revenue Impact Statement
Amendment -2 adopted
Work Session
Not Heard · Agenda item 1 · Room HR A · Requires public contractors to demonstrate and maintain tax compliance, through a certification process, as a condition of the execution of a public contract.
Revenue Impact HB 4016 1
Revenue Impact Statement
Amendment -1 proposed
Public Hearing held.
Public Hearing
Heard · Agenda item 3 · Room HR A · Requires public contractors to demonstrate and maintain tax compliance, through a certification process, as a condition of the execution of a public contract.
Referred to Revenue with subsequent referral to Ways and Means.
First reading. Referred to Speaker's desk.
neral Fund appropriation made to the Department of Revenue by 4 section 1 (3), chapter 553, Oregon Laws 2025, for the biennium ending 5 June 30, 2027, for the Personal Tax and Compliance
s, but excluding lottery funds and federal 14 funds not described in section 2, chapter 553, Oregon Laws 2025, col- 15 lected or received by the Department of Revenue, for the Personal Tax
neral Fund appropriation 11 made to the Department of Revenue by section 1 (3), chapter 553, Oregon Laws 2025, for the 12 biennium ending June 30, 2027, for the Personal Tax and Compliance
neral Fund appropriation made to the Department of Revenue by 15 section 1 (3), chapter 553, Oregon Laws 2025, for the biennium ending 16 June 30, 2027, for the Personal Tax and Compliance
g expenditures, the limitation on 15 expenditures established by section 2 (3), chapter 553, Oregon Laws 2025, for the biennium 16 ending June 30, 2027, as the maximum limit for payment of
neral Fund appropriation made to the Department of Revenue by 20 section 1 (4), chapter 553, Oregon Laws 2025, for the biennium ending 21 June 30, 2027, for the Business Division, is increa
s, but excluding lottery funds and federal 4 funds not described in section 2, chapter 553, Oregon Laws 2025, col- 5 lected or received by the Department of Revenue, for the Personal Tax
s, but excluding lottery funds and federal 8 funds not described in section 2, chapter 553, Oregon Laws 2025, col- 9 lected or received by the Department of Revenue, for the Business 10 D
neral Fund appropriation 23 made to the Department of Revenue by section 1 (4), chapter 553, Oregon Laws 2025, for the 24 biennium ending June 30, 2027, for the Business Division, is increa
neral Fund appropriation made to the Department of Revenue by 10 section 1 (4), chapter 553, Oregon Laws 2025, for the biennium ending 11 June 30, 2027, for the Business Division, is increa
g expenditures, the limitation on 27 expenditures established by section 2 (4), chapter 553, Oregon Laws 2025, for the biennium 28 ending June 30, 2027, as the maximum limit for payment of
neral Fund appropriation made to the Department of Revenue by 14 section 1 (5), chapter 553, Oregon Laws 2025, for the biennium ending 15 June 30, 2027, for the Collections Division, is inc
s, but excluding lottery funds and federal 19 funds not described in section 2, chapter 553, Oregon Laws 2025, col- 20 lected or received by the Department of Revenue, for the Business 21 D
s, but excluding lottery funds and federal 23 funds not described in section 2, chapter 553, Oregon Laws 2025, col- 24 lected or received by the Department of Revenue, for the Collections 2
ral Fund appropri- 34 ation made to the Department of Revenue by section 1 (5), chapter 553, Oregon Laws 2025, 35 for the biennium ending June 30, 2027, for the Collections Division, is inc
neral Fund appropriation made to the Department of Revenue by 25 section 1 (5), chapter 553, Oregon Laws 2025, for the biennium ending 26 June 30, 2027, for the Collections Division, is inc
g expenditures, the limitation on 3 expenditures established by section 2 (5), chapter 553, Oregon Laws 2025, for the biennium 4 ending June 30, 2027, as the maximum limit for payment of
ts, but excluding lottery funds and federal 4 funds not described in section 2, chapter 553, Oregon Laws 2025, col- 5 lected or received by the Department of Revenue, for the Collections 6
General Fund appropriation made to the Department of Revenue by section 1 (3), chapter 553, Oregon Laws 2025, for the biennium ending June 30, 2027, for the Personal Tax and Compliance Div
ng expenditures, the limitation on ex- penditures established by section 2 (3), chapter 553, Oregon Laws 2025, for the biennium ending June 30, 2027, as the maximum limit for payment of exp
ents, but excluding lottery funds and federal funds not described in section 2, chapter 553, Oregon Laws 2025, collected or received by the Department of Revenue, for the Personal Tax and C
General Fund appropriation made to the Department of Revenue by section 1 (4), chapter 553, Oregon Laws 2025, for the Enrolled House Bill 4016 (HB 4016-B) Page 4 biennium ending June 30,
ng expenditures, the limitation on ex- penditures established by section 2 (4), chapter 553, Oregon Laws 2025, for the biennium ending June 30, 2027, as the maximum limit for payment of exp
neral Fund appropriation 16 made to the Department of Revenue by section 1 (3), chapter 553, Oregon Laws 2025, for the 17 biennium ending June 30, 2027, for the Personal Tax and Compliance
ents, but excluding lottery funds and federal funds not described in section 2, chapter 553, Oregon Laws 2025, collected or received by the Department of Revenue, for the Business Division,
g expenditures, the limitation on 20 expenditures established by section 2 (3), chapter 553, Oregon Laws 2025, for the biennium 21 ending June 30, 2027, as the maximum limit for payment of
General Fund appropriation made to the Department of Revenue by section 1 (5), chapter 553, Oregon Laws 2025, for the biennium ending June 30, 2027, for the Collections Division, is increa
ng expenditures, the limitation on ex- penditures established by section 2 (5), chapter 553, Oregon Laws 2025, for the biennium ending June 30, 2027, as the maximum limit for payment of exp
neral Fund appropriation 28 made to the Department of Revenue by section 1 (4), chapter 553, Oregon Laws 2025, for the 29 biennium ending June 30, 2027, for the Business Division, is increa
ents, but excluding lottery funds and federal funds not described in section 2, chapter 553, Oregon Laws 2025, collected or received by the Department of Revenue, for the Col- lections Divi
g expenditures, the limitation on 32 expenditures established by section 2 (4), chapter 553, Oregon Laws 2025, for the biennium 33 ending June 30, 2027, as the maximum limit for payment of
neral Fund appropriation 39 made to the Department of Revenue by section 1 (5), chapter 553, Oregon Laws 2025, for the 40 biennium ending June 30, 2027, for the Collections Division, is inc
g expenditures, the limitation on 43 expenditures established by section 2 (5), chapter 553, Oregon Laws 2025, for the biennium 44 ending June 30, 2027, as the maximum limit for payment of
S LIMITED NONLIMITED LIMITED NONLIMITED FUNDS POS FTE SUBCOMMITTEE ADJUSTMENTS SCR 005 - Personal Tax and Compliance Division Personal Services $ 230,537 $ - $ 5,584
S LIMITED NONLIMITED LIMITED NONLIMITED FUNDS POS FTE SUBCOMMITTEE ADJUSTMENTS SCR 005 - Personal Tax and Compliance Division Personal Services $ 230,537 $ - $ 5,584
236,121 3 1.12 Services and Supplies $ 31,966 $ - $ 774 $ - $ - $ - $ 32,740 SCR 006 - Business Division Personal Services $ 36,517 $ - $ 37,124 $ - $ - $ - $ 73,6
236,121 3 1.12 Services and Supplies $ 31,966 $ - $ 774 $ - $ - $ - $ 32,740 SCR 006 - Business Division Personal Services $ 36,517 $ - $ 37,124 $ - $ - $ - $ 73,6
73,641 1 0.38 Services and Supplies $ 5,411 $ - $ 5,502 $ - $ - $ - $ 10,913 SCR 007 - Collection Division Personal Services $ 37,506 $ - $ 21,719 $ - $ - $ - $ 59
73,641 1 0.38 Services and Supplies $ 5,411 $ - $ 5,502 $ - $ - $ - $ 10,913 SCR 007 - Collection Division Personal Services $ 37,506 $ - $ 21,719 $ - $ - $ - $ 59
“Chapter 102, (2026 Laws): Effective date June 5, 2026.”
Confirm with the official record.
Supplemental, source-linked analysis from project researchers and community contributors. It is separate from Oregon's official record.