Oregon is making history with a new initiative that could reshape how tax policies are evaluated. With Senate Bill 1, passed in 2023, the state became the first in the U.S. to invite taxpayers to voluntarily share race and ethnicity data on tax returns. But what does this mean for you?

What’s the Buzz About Senate Bill 1?

Senate Bill 1 aims to collect demographic data to better understand how tax policies affect different communities. This pioneering effort highlights Oregon’s commitment to equity and representation in its tax system.

How Does It Work?

Starting with 2024 tax returns (filed in 2025), taxpayers can choose to share race and ethnicity information using a special form. Those not filing a return can still contribute through Revenue Online.

Potential Benefits

• Informed Policy Making: More data could reveal how tax laws affect different communities, paving the way for equitable reforms.
• Enhanced Representation: Participation helps ensure Oregon’s diverse population is reflected in future policy decisions.

Possible Concerns

• Privacy: Some taxpayers may hesitate to share demographic details, even with assurances of confidentiality.
• Data Usage: Questions remain about whether the data will truly drive equitable policy changes.

Is Your Information Safe?

The Oregon Department of Revenue confirms that race and ethnicity information will be stored separately from personal identifiers and used strictly for research. It won’t impact audits, collections, or be shared with the IRS. Tax professionals and software providers cannot use this data beyond filing support.

What’s Next?

Collection begins with 2024 returns, with analysis starting in 2025 and reports expected by 2026. The ultimate goal: create more balanced and equitable tax policies that serve all Oregonians fairly.

At Grants Pass Tax Service, we’re dedicated to keeping you informed about important tax changes and policies. Contact us for expert guidance on how new developments may affect your taxes.